Insider Gaming Network
flag
flag
flag
Mike Straw·
NewsXbox OneXbox Series X
··1 min read

UK CMA Responds To European Union’s Approval of Microsoft’s Activision Purchase

CMA Microsoft Activision

The European Union (EU) has officially approved Microsoft’s $69 billion acquisition of Activision Blizzard. The move clears a major hurdle for the company as it looks to close the deal officially, but one party still standing in the way is the UK Competition & Markets Authority (CMA).

The CMA previously voted to block Microsoft’s purchase of Activision due to the uncertainty of the cloud gaming space. Now, with the EU giving its approval, the CMA posted a multi-Tweet response to the decision.

“The UK, US and European competition authorities are unanimous that this merger would harm competition in cloud gaming,” the post reads. The CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector.

“Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next 10 years. They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”

The CMA says that the ability to set the terms and conditions for the market is “one of the reasons” it rejected the proposals and “prevented this deal”. The organization closed by stating that it stands by its decision.

Microsoft is currently in the process of appealing the CMA’s decision. It’s also awaiting a final decision from the United States Federal Trade Commission on the purchase.

In a recent interview with Kinda Funny, Xbox boss Phil Spencer said that the company remains confident in the purchase moving forward.

“The company remains very, very committed,” he said at the time. “Activision Blizzard King is not our strategy, but it is an accelerant for our strategy. We’re still heads down and working through regulatory.”

What do you think of the CMA’s response to Microsoft’s purchase of Activision being approved by the EU?

For more Insider Gaming, check out the latest on Bloodhunt and its future.

Tags
Mike Straw
Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of gaming, Mike was a beat reporter for various outlets covering the NHL for years before moving to game journalism full time. When he's not writing, you can find Mike playing various turn-based strategy games and roguelikes.

4 Comments

  1. This is all quite fascinating to see happening. And the results are massive, at least in terms of video games. Looking forward to future updates about this timeline.

  2. Then let’s just submit a complaint via the public complaint system the CMA have. Literally everyone apart from Sony are in favour of this. The same Sony demonstrably paying game developers to not publish on Xbox. SHAME. Shame on the CMA for blindly believing Sony rhetoric, and SHAME on Sony for anti-competitive behaviour. Surely this is illegal?

  3. I think the CMA were cheap enough for Sony to buy. Even with ABK Microsoft is still in 3rd place out of the big 3 gaming giants. The CMA will fold to pressure now as its becoming too obvious that money will change hands and they will benefit from that should the deal be blocked. Unfortunately Sony overestimated the CMA and the UK’s influence on the world, since brexit the UK is very small and insignificant.

  4. Microsoft clearly haven’t paid off the right people yet. They’ll make some vague promises, a “donation” will be made, money will change hands, and the merger will go ahead.
    That’s the way the corrupt system works.

Comments are closed.