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“The UK is clearly closed for business”
Image credit:Activision/Rock Paper Shotgun
Image credit:Activision/Rock Paper Shotgun
Microsoft’s proposed acquisition of Activision Blizzard King has hit a large snag on the road. The UK’s Competitions And Markets Authority (CMA) previously released theirprovisional findingson the $69 billion buyout, laying out concerns over less competition and innovation for UK gamers. Microsoft were allowed to respond to the CMA’s findings, but it seems they weren’t able to quell the regulator’s concerns, as the CMA have now vetoed the merger.
Official Reveal Trailer | Call of Duty: Modern WarfareWatch on YouTube
Official Reveal Trailer | Call of Duty: Modern Warfare
The issue of exclusivity for series likeOverwatch, Diablo, and, most of all, Call Of Duty has been at the centre of headlines for months, but the CMA’s final decision is over the acquisition’s possible side effect on the cloud gaming market.
“The CMA has prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing cloud gaming market,” reads the CMA’s announcement. They also say the deal would lead “to reduced innovation and less choice for UK gamers over the years to come,” and that “Microsoft’s solution failed to effectively address the concerns” in the CMA’s provisional findings.
Microsoftsigned many dealsin the lead-up to the CMA’s decision, committing to release games on rival streaming providers and console manufacturers in the future. The CMA found multiple shortcomings in Microsoft’s proposal, though, as they say the company wasn’t open to PC operating systems other than Windows. You can read their full list of shortcomings and potential benefitshere.
Activision Blizzard had a similar response, as a spokesperson toldEurogamer"We will work aggressively with Microsoft to reverse this on appeal,” and that “ the report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects.” The publisher ended their note with a bite at the government: “Global innovators large and small will take note that - despite all its rhetoric - the UK is clearly closed for business."
The US Federal Trade Commission have alreadyfiled suit to block the deal, but as theNew York Postreported yesterday that Microsoft is moving to close the deal regardless.
