UK authorities block Microsoft's acquisition of Activision Blizzard, Microsoft immediately announces objection

The UK Competition and Market Authority (CMA) announced on April 26, 2023 that it will block Microsoft's acquisition of Activision Blizzard. The CMA said the reason for this move was to 'protect cloud gaming options and innovation.' In response to the CMA's decision, Microsoft has indicated that it will appeal.

Microsoft / Activision deal prevented to protect innovation and choice in cloud gaming - GOV.UK

Microsoft's Activision Blizzard acquisition blocked by UK regulators - The Verge

In 2022, Microsoft announced a $68.7 billion (approximately ¥9 trillion) acquisition of Activision Blizzard. Regarding this, the US Federal Trade Commission (FTC) has sued Microsoft due to concerns that ``Microsoft may monopolize popular titles such as the Call of Duty series,'' and the EU Fair Trade Commission The association is proceeding with the issuance of a warning , gamers have filed class action lawsuits , and Sony has taken the lead in criticizing the acquisition, leading to stronger opposition to the merger.

On the other hand, Nintendo and NVIDIA have signed a contract with Microsoft to provide games, and Japan's Fair Trade Commission has approved the acquisition. I have.

Japan's Fair Trade Commission ended the review as Microsoft's acquisition of Activision Blizzard 'does not hinder competition', why? -GIGAZINE

by Prachatai

In February 2023, the CMA, which was investigating the impact of the acquisition as a British regulator, released a preliminary finding that ``the contract between Microsoft and Activision Blizzard may harm British gamers.'' Reported .

After that, the CMA, which had been scrutinizing public opinions and scrutinizing 3 million documents regarding the acquisition, said that the acquisition of Activision Blizzard would allow Microsoft to control major game content such as Call of Duty and Overwatch. He reiterated that the company's dominance in the cloud gaming market will be strengthened.

In order to eliminate these concerns, Microsoft proposed mitigation measures such as supplying games to other companies' platforms for 10 years. has been dismissed as

The CMA added, 'The cloud will eliminate the need for British gamers to purchase expensive consoles and PCs, greatly increasing flexibility and choice in how they play. The cloud gaming market has begun to grow rapidly. Allowing Microsoft to consolidate its strong position risks undermining the innovation that is essential to the development of these opportunities, ”he concluded and announced a final decision to block the acquisition.

In response, Microsoft said, ``We remain fully committed to this acquisition and plan to appeal. and discourages innovation and investment in the UK, after lengthy deliberations the decision appeared to reflect a lack of understanding of how the gaming market and cloud technology actually work. We are very disappointed,' he said in a statement, announcing his intention to appeal.

We remain fully committed to our acquisition with @ATVI_AB and will appeal today's determination by the CMA .

—Brad Smith (@BradSmi) April 26, 2023

Also, in a statement through the media, Activision Blizzard said, ``The CMA's final report contradicts Britain's ambitions to become an attractive country for building technology businesses. It is an insult to the British public in the face of an increasingly dire economic outlook that has forced us to rethink our plans for growth in the UK. Innovators large and small around the world have noticed that the UK is clearly a closed country,' he criticized the CMA's decision in a harsh tone.

As mentioned above, Microsoft is also facing a lawsuit by the FTC in the United States, with a hearing scheduled for August 2023. If various documents are released in this investigation, the full picture of this acquisition drama that divides the game industry will be further clarified, such as details of Microsoft's counterargument that 'Sony also has an exclusive contract with PlayStation'. is expected.