Microsoft’s purchase of Activision Blizzard blocked by UK regulators

The decision was made after months of reviewing 3 million Microsoft and Activision documents and more than 2,100 emails from the public. The CMA concluded that the deal could “alter the future of the cloud gaming market, leading to reduced innovation and fewer options for UK gamers over the next few years”.

We’ve prevented @Microsoft from purchasing @Activision over concerns the deal would damage competition in the #CloudGaming market, leading to less innovation and choice for UK #gamers. ☁️ pic.twitter.com/prWcDI7Evt

— Competition & Markets Authority (@CMAgovUK) April 26, 2023

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Microsoft has said it will appeal the ruling, but it’s a bomb in the company’s plans. If the appeal is unsuccessful, the Activision Blizzard purchase will likely be cancelled.

“Microsoft has a strong position in cloud gaming services and 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 CMA said.

We remain fully committed to our acquisition with @ATVI_AB and will appeal today’s determination by the CMA. Here’s our statement. pic.twitter.com/ylvDP5RUqQ

— Brad Smith (@BradSmi) April 26, 2023

Microsoft has tried to address these cloud gaming-related issues by offering 10 years of access to its games to Boosteroid, Ubitus and Nvidia, but the CMA has reviewed the agreements and said they have “a number of significant shortcomings” in gaming services. in cloud.

“Did not sufficiently cover different business models of cloud gaming services, including multi-game subscription services.”

“It wasn’t open enough to vendors wanting to offer versions of games on PC operating systems other than Windows.”

“It would standardize the terms and conditions under which games are made available, rather than being determined by the dynamism and creativity of market competition, as would be expected in the absence of the merger.”

Via The Verge