“CMA Blocks Microsoft and Activision Blizzard Merger for 10 Years Due to Unfair Advantage in Cloud Gaming Scene”

The UK Markets and Competition Authority (CMAfor its acronym in English) has revealed that the agreement between Microsoft y Activision Blizzard it will be blocked for ten years unless your appeal is successful. This would prevent the two companies from merging for a full decade, reducing the chances of the deal going through.

This comes from the final report of the CMA on the acquisition, in which it was revealed that the deal would be blocked in the UK. Although the CMA listed many factors in his decision, noting the desire to maintain the “status quo” of the video game industry and to ensure that Microsoft Don’t have an unfair advantage in the cloud gaming scene.

In the report, the CMA He explains that his rejection of the agreement would also prevent “both parties from trying to merge for an additional period.” More specifically, he goes on to say that “our usual practice would be to prevent a future merger between the parties for the next ten years, barring changed circumstances.”

It’s unclear what these changes might consist of, though it could refer to an agreement that addresses your concerns, or perhaps a situation where you Sony expand into cloud gaming. Otherwise, the CMA says the only solution is to cancel the merger entirely, ensuring that “current competitive dynamics in the market would not change.”

In any case, Microsoft y Activision Blizzard they have the opportunity to appeal the rejection before any ten-year merger ban is imposed. From what we’ve seen so far from both sides, they intend to fight the case.

Activision described the decision of the CMA as a “detriment to UK citizens”, threatening to “reassess their UK growth strategy”. The controversial CEO of Activision BlizzardBobby Kotick has also criticized the decision. In an interview, he argued that there should be more mergers between US companies, so they can compete with companies like Tencent in China.

However, given the numerous concerns raised by regulators around the world with this merger, that is not likely to happen any time soon. Instead, we can expect much smaller acquisitions in the industry, such as the Sony with the developer DestinyBungie, which was revealed right after Bungie’s own deal Microsoft.

Given its smaller scale, this deal was approved by regulators much faster, and Bungie formally joined PlayStation in July of last year, just five months after the acquisition was announced. In better news for Microsoft y Activision Blizzard, their merger has yet to face any further pushback. It could be that the CMA be the only obstacle in your way, even though it is an obstacle that threatens the entire agreement throughout the world.

Via: The Gamer

note of editor: Well, the drama continues friends, the truth is that I wonder how Tencent does not have these types of problems.