UK Competition Authority Bans Microsoft and Activision from Standard Stock Purchases

It’s been a few weeks since the UK’s Competition and Markets Authority (CMA) banned Microsoft from buying Activision Blizzard for nearly $69 billion. This is due to concerns that Xbox’s merger with the Call of Duty and Diablo publisher would change the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers in the years to come.

Now it turns out that British officials banned both companies from standard stock purchases. Neither company can invest in the other without written consent. The restriction also applies to subsidiary divisions. So Activision Blizzard can’t invest in Bethesda or Xbox Game Studios, and Microsoft can’t even buy a part of Blizzard or King. This also applies to investments in development studies.

Additional restrictions were applied to prevent “preemptive action”. In other words, the CMA wants to make sure Microsoft doesn’t try to buy Activision Blizzard despite the ban.

Neither party has yet released a statement on this move. Microsoft has previously said it will appeal the CMA’s decision. He also hired for that two very experienced lawyers. But the ice moved earlier. British Prime Minister Rishi Sunak sided with the acquisition.

In campaign promises, Sunak claimed to lead a pro-business government. According to Microsoft, however, the CMA’s decision is bad for Great Britain and shows other companies not to invest here. Sunak does not want to allow this and together with the government published it new design strategic direction with the aim of minimizing the burden on businesses and supporting investment and economic growth.

On LinkedIn again statedthat they need a non-obtrusive regulatory system in the UK. “They must allow businesses to do what they do best: creating jobs and growing the economy,” he added.