UK Blocks Microsoft Acquisition Of Activision Blizzard Even Though It Wants To Attract Technology Businesses

The UK's Competition and Markets Authority (CMA) has essentially blocked Microsoft's planned $75 billion acquisition of Activision-Blizzard. The country's competition regulator has raised concerns about Microsoft dominating the rapidly growing cloud gaming market with insanely popular game titles such as Call of Duty.

UK's CMA may not be speaking the same language that Sony spoke last year, but the conclusion is the same. The Japanese tech giant had claimed Microsoft could make Activision's games exclusive to its own cloud gaming service and wanted the deal to be blocked.

UK's CMA Fears Microsoft May Monopolistically Control Cloud Gaming Market

Microsoft's acquisition of Activision Blizzard has hit yet another roadblock. The deal has seen multiple challenges in other parts of the world, including the US and the EU.

Some industry experts had expected that at least UK's CMA would approve the deal. This is because the UK has been aggressively trying to attract technology businesses.
After a rather lengthy review, the CMA has essentially blocked Microsoft from acquiring Activision-Blizzard. However, it is not exactly for the reason that's been raised by Sony.

The CMA had previously determined that the possible restriction of some game titles was not actually a serious concern. It appears the UK's regulatory body is concerned about the deal's impact on cloud gaming.

While blocking the deal, CMA expressed its concerns that if Xbox purchased Activision Blizzard, it would be able to dominate the cloud gaming market. It feared Microsoft wouldn't make games like Call of Duty and World of Warcraft console-exclusive. Instead, it would offer these games exclusively on its own cloud gaming platform.

Microsoft could effectively control multiple elements such as subscription pricing and eventually alter the very structure of the gaming market. The company would be able to pull this off without facing opposition from other services as they wouldn't get to offer these popular games, feared the CMA.

UK's Competition Regulator Rejects Remedial Solutions Suggested By Microsoft

Microsoft had offered the CMA remedies to try and address its concerns. The company was willing to meet "requirements governing what games must be offered by Microsoft to what platforms and on what conditions over a ten-year period." However, the regulator rejected the proposals.

As expected, Microsoft will appeal to the UK Competition Appeals Tribunal to reconsider its decision. The company will continue dealing with relevant regulatory authorities in other countries. A spokesperson for Activision Blizzard, however, has claimed that "the UK is clearly closed for business."