“CMA blocks Microsoft’s purchase of Activision Blizzard in UK, citing anti-competitive concerns”

The Markets and Competition Regulatory Authority in the United Kingdom (CMA) announced this Wednesday that it has blocked the purchase by Microsoft of the video game company Activision Blizzardvalued at 55,000 million pounds (62,163 million euros).

Martin Coleman, president of the independent panel of experts that carried out the investigation of the British regulator, considered that Microsoft “already enjoys a powerful and advantageous position over other competitors in cloud gaming services (cloud gaming) and this deal would reinforce that advantage, providing the ability to undercut new and innovative competitors.”

“Microsoft has engaged constructively with us to try to address these issues and we are grateful for that, but their proposals have not been effective in addressing our concerns and would have replaced competition with ineffective regulation in a dynamic new market.” indicated the president when disclosing a report of the CMA.

According to Coleman, “cloud gaming needs a free and competitive market to drive innovation and choice.” “The best way to achieve this is to allow the current dynamics of competition in cloud gaming continue to carry out their work,” he added.

Harsh reviews of Activision Blizzard

After learning of the decision, a spokeswoman for Activision Blizzard -creator of titles as popular as Call of Duty– stated that “the CMA report contradicts the ambitions United Kingdom to become an attractive country to develop technological businesses”, while anticipating that the company “will work aggressively with Microsoft to reverse this” with an appeal.

“The conclusions of the report make a disservice to british citizenswhich are facing increasingly tough economic prospects,” he warned.

The source further noted that the group will review its growth plans for the UK and warned that “global innovators big and small will take note that despite all this rhetoric, the UK is clearly closed for business“.

change of mind

Last month, the UK regulatory body had partially cleared the way for the American technology giant to complete the acquisition of the video game creator.

The CMA then raised one of the main reservations to the operation that it had presented in a preliminary report, considering that the purchase “will not result in a substantial decrease in competition” in the video consoles after having analyzed “new evidence”.

Despite everything, the agency maintained its analysis of the effects of purchasing in the cloud video game market, just as they continue to do the European Commission and United States. The British regulator’s decision paves the way, according to experts, for both Brussels and Washington to follow suit and veto the operation.