“UK Competition and Market Authority Blocks Microsoft’s Acquisition of Activision Blizzard”

Jakarta –

Looks like an attempt Microsoft be with Activision Blizzard it will be difficult. This is because the UK’s Competition and Market Authority (CMA) did not approve of Microsoft’s acquisition of the video game giant.

The decision to block the deal has something to do with the cloud gaming market. According to CMA, the acquisition will also result in less innovation and less choice for UK gamers in the future.

CMA revealed that Microsoft considered to have failed to provide a solution regarding concerns over the impact of its acquisition on Activision. They also assume that games Call of Duty which will be exclusive in Xbox illogical.

“Microsoft has a strong position in cloud gaming services and the evidence available to CMA suggests that Microsoft would find it commercially advantageous to make Activision games exclusive to its own cloud gaming service,” he said. detikINET from IGN, Tuesday (27/4/2023).

It was suggested that the deal would be too strengthening Microsoft in the gaming market. Moreover, there is control over important content, such as Call of Duty, Overwatch, and World of Warcraft.

CMA believes that if the acquisition is approved, there will be a significant risk of disagreement between Microsoft and other cloud gaming service providers. Microsoft is clearly not happy with the decision.

Questioning the decision that came out of the British CMA, Microsoft I have replied and will appeal. The tech giant said it was disappointed with the results, and said they had a wrong understanding of the market developments in question.

“We are extremely disappointed that after long deliberation, this decision appears to reflect a misunderstood understanding of this market and how relevant cloud technologies work,” said Microsoft President, Brad Smith.

Smith also said that they remain fully committed to the acquisition Activision Blizzard. According to him, the CMA’s decision to refuse to address competition issues, actually hampered technological innovation and investment in the UK.

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(hps/fyk)