CMA says gaming deal would harm competition on the cloud Microsoft says it plans to appeal Wednesday’s decision
Microsoft Corp.’s $69 billion takeover of Activision Blizzard Inc. suffered a hammer blow after Britain’s antitrust watchdog vetoed the gaming industry’s biggest ever deal, saying it would harm competition in cloud gaming.
The Competition and Markets Authority said its concerns couldn’t be solved by remedies such as the sale of blockbuster title Call of Duty or so-called behavioral remedies involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday.
Pressure had been mounting on Microsoft as it lobbies at home and in Europe to convince watchdogs to clear the deal — one of the 30 biggest acquisitions of all time. Crucially, the CMA’s conclusions comes before decisions from the European Union and the US Federal Trade Commission, which is awaiting a hearing in the summer after formally suing to veto the transaction.
“Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors,” Martin Coleman, chair of the independent panel of experts conducting this investigation, said.
The CMA took a view that the merger could result in higher prices, fewer choices and less innovation for UK gamers.
