UK regulators vote to block Microsoft acquisition of Activision Blizzard

destructoid.com:

The UK Competition and Markets Authority (CMA) has officially voted not to approve Microsoft’s proposed acquisition of publisher Activision Blizzard, placing a major blockade on Microsoft’s path to completing the $68.7 billion purchase, which was first announced in January 2022.

“The CMA has prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come,” reads the CMA’s official statement. “Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service.”

“The deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch, and World of Warcraft.”

The CMA statement notes that while Microsoft has presented a proposal to address these and other concerns, the CMA evaluation found a “number of significant shortcomings” in the response, noting a lack of coverage for potential platforms such as cloud gaming, or PC operating software outside of Windows. The CMA suggests the merger could “standardise the terms and conditions on which games are available, as opposed to them being determined by the dynamism and creativity of competition in the market.”

Microsoft will exercise its right to appeal the CMA’s decision.

“We have already signed contracts to make Activision Blizzard’s popular games available on 150m more devices, and we remain committed to reinforcing these agreements through regulatory remedies,” said Microsoft president Brad