Microsoft’s $70 billion deal to acquire US-based video game company Activision Blizzard has been blocked in the UK by the competition watchdog. Brad Smith, vice chairman and president of Microsoft, said; “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.”
Activision Blizzard Deal: EU Was A Better Place to Set the Firm
Brad said that the move was “bad for Britain” and that the European Union was a better place to set up a firm than the UK. The competition regulator hit back, saying; “It is the CMA’s job to do what is best for the people, businesses, and economy of the UK, not merging firms with commercial interests.” Meanwhile, Microsoft and Activision have said they would appeal the CMA’s decision.
The deal is essential for Microsoft as the company wants to secure its footing in the fast-growing cloud gaming market. Microsoft has previously signed agreements with some of the current key players in cloud gaming, like tech company Nvidia. However, with the current situation, Sony bosses will be pleased as they have consistently opposed the deal.
A Flawed Decision
Brad has termed CMA’s decision flawed and said that it appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works. “The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business,” a spokesperson for Activision said.
Also read: Microsoft Announces New Azure-based Cloud Tools for Game Developers
