Microsoft Appeals CMA’s Decision to Block Activision Blizzard Acquisition

As previously announced, Microsoft has appealed the CMA’s decision to block its acquisition of Activision Blizzard, and its summary of the arguments is now available for review.

In April, after months of deliberation, the UK’s Competition and Markets Authority made the shock decision to block Microsoft’s proposed $69 billion takeover of the Call of Duty maker, highlighting concerns about the industry. a race”. in this growing market.

It is a position welcomed by some and rejected by others. The European Union, which approved the deal in May after Microsoft agreed to concessions, criticized the position of the Capital Markets Authority, and a number of British politicians, including Chancellor Jeremy Hunt, also raised concerns. Microsoft, of course, criticized the decision, confirming that it would appeal.

This appeal would require Microsoft to submit its case to the UK Competition Court of Appeal, and a summary of its arguments Available now for viewing. These outline the five main grounds on which Microsoft is challenging the ruling, starting with its assertion that the CMA made “fundamental errors in its assessment”. [Microsoft’s] present position in cloud gaming services by ignoring the limitations of local gaming” (i.e. when consumers play a game on their devices via digital download or disc).

He also claims that the CMA “erred in not giving due consideration to three long-term commercial agreements [Microsoft] entered into a conflict with cloud game providers,” claims the CMA’s finding that Activision would have made its games available on cloud game services without the “unreasonable and procedurally unfairly concluded” merger, and argues that Microsoft’s CMA findings “would have the potential and incentive to block gaming services.” Cloud Competitor by Denying Access to Activision’s Game Content “After ‘Illegal’ Acquisition”.

Finally, Microsoft maintains that the CMA “erred in law in assuming it had an obligation to enforce what it described as a global remedy,” “unlawfully failed to consider comity interests,” “erred in denying Microsoft Cloud Remedy’s decision,” and “acted in violation [Microsoft’s] Duty to Justice Under Common Law and CMA Compensation Guidelines”.

Appealing AMC’s decision is likely to be a lengthy process for Microsoft and Activision; The UK Competition Court of Appeal said it aims to deal with minor cases within nine months, and if the appeal is successful, it must still return to the CMA for review.