UK’s Top Antitrust Regulator Blocks Microsoft’s Purchase Of Activision Blizzard

Microsoft has been barred from carrying out one of the tech industry’s biggest purchase deals.

A leading antitrust regulator in the United Kingdom has prevented the computational giant from purchasing Activision Blizzard and this has ended up putting the deal on hold. The regulator feels it would jeopardize competition in regard to cloud gaming.

Moreover, this particular Competition and Markets Authority (CMA) mentioned through a statement released on Wednesday how it was concerned about a reduction in innovation and providing a decreased selection of choices for gamers across the United Kingdom in the future.

This particular acquisition was reportedly worth a staggering $69 billion that was unveiled at the start of 2022. And if it did manage to pull through, it would make the software maker even stronger in regard to cloud gaming. Today’s market share for the firm stands at 60% to 70% so you can only imagine how the share would be increased globally.

The shares for Activision fell more than 11% today as Microsoft’s shares increased by 8%.

Activision Blizzard is one of the world’s largest developers in the world of video games as it is known for producing games like Call of Duty, Overwatch, Diablo, and World of Warcraft. Moreover, Microsoft which sells such Xbox gaming consoles is now also offering subscription services for video games that are known as Xbox Game Pass. This entails a video game streaming service that’s based on the cloud.

This type of deal combines firms together and is continuing to meet a great amount of opposition thanks to global antitrust regulators.

Let’s not forget how toward the end of 2022, we saw the American FTC suing to block this transition over a number of concerns regarding competition. Meanwhile, a hearing for August is scheduled and the EU is also glancing over this transaction.

For now, it’s not quite sure if the deal may be allowed to carry on after receiving no approval from a leading regulator. Meanwhile, the ruling mentioned how the tech giant could work toward making the games on Activision a more exclusive affair to its platforms and then go about increasing the costs of the subscriptions for Game Pass.

Remember, UK gamers are faced with cloud restrictions to prevent them from making expensive gaming purchases of gaming consoles and PCs as it provides them with so much more flexibility and selection in terms of how they play. In the end, it just puts Microsoft in a leading position in the market for cloud gaming as starts to grow at a rapid pace and would take on innovation that’s important to the development of such chances.

So after the sudden rejection, Microsoft has full plans to appeal such decisions. The tech giant says it has already started work on this front by sending out a notice of appeal to the Competition Appeals Tribunal in the UK. And this is being done on behalf of both parties involved.

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