UK blocks Microsoft’s acquisition deal of Activision

United Kingdom’s Competition and Markets Authority (CMA) has blocked Microsoft’s $68.7 billion deal to acquire Activision Blizzard.

In a press release, a spokesperson says that Redmond officials haven’t effectively succeeded in addressing issues in the cloud gaming sector, despite its 10-year binding deals with various publishers like Nvidia (GeForce NOW) and Nintendo back in February this year.

The final decision to prevent the deal comes after Microsoft’s proposed solution failed to effectively address the concerns in the cloud gaming sector, outlined in the Competition and Markets Authority’s (CMA) provisional findings published in February.

The CMA found evidence indicating that it would be advantageous for Microsoft to exclusively offer Activision’s games on its cloud gaming platform, which is already well-established in the industry.

Microsoft’s rival, Sony and its PlayStation consoles has been opposing this deal for long.

Earlier in February 2023, Microsoft boss Brad Smith arrived at a hearing with EU antitrust regulators to smoothen up the tech giant’s attempt to acquire Activision Blizzard.

Activision CEO Robert Kotick represented his company, while Sony, Google, and Nvidia Corp are also present in the hearing.

However, regulators and experts have been warning that the deal, which almost reaches $69 billion, could harm market competition given the stature of Microsoft and prevent innovations.

Microsoft & Activision Blizzard’s deal didn’t go as smoothly as Redmond officials expected

In 2022, Microsoft’s proposed $68.7 billion acquisition of Activision Blizzard has been a really messy affair, as pretty much everyone expected it to be.

Even though the deal has been approved in some countries like Saudi Arabia and Brazil, it is facing hurdles in major markets like the EU and the U.S.

Also, it is being probed in the UK by the CMA while the U.S. Federal Trade Commission has said flat out that it doesn’t want the deal to go through.

And, as if that wasn’t enough, an independent group of gamers has also sued Microsoft because of the acquisition.

This lawsuit we mentioned has been filed by 10 U.S. gamers, three of whom play exclusively on PlayStation consoles.

Furthermore, the 45-page document argues that if the acquisition is allowed to proceed, it would have a lot of negative effects on the industry as a whole.

Of course, this includes reduced competition, higher prices, less creativity, decreased output, and Activision games being locked to Microsoft’s own platforms.

Note that the plaintiffs have demanded that Microsoft and Activision’s acquisition contract should be declared null and void and that they should be permanently restricted from going in this direction ever again.

Lots of Activision titles coming to Xbox Game Pass soon

Earlier, as we’ve mentioned, Microsoft also announced that it’s signed a 10-year binding deal with Nintendo to bring more Xbox games, including Call of Duty, to the often-overlooked console.

The move could strengthen Microsoft’s position to acquire the famous game studio, the home to some of the most beloved franchises including COD, Overwatch, Crash Bandicoot, Sekiro, and more.

Microsoft CEO, Satya Nadella, also previously said that they are investing deeply in world-class content, community, and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive, and accessible to all.

What do you think about the billion-dollar attempt from Microsoft over Activision Blizzard? Let us know in the comments!

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