Battle between gaming giants: Microsoft fights CMA to acquire Activision Blizzard

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Release: 2023-05-25 15:59:25
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News on May 25, a Microsoft spokesperson said today that the company has appealed the decision of the Competition and Markets Authority (CMA), the British antitrust regulator, to prevent it from selling US$69 billion (approximately 487.14 billion yuan) The deal to acquire Activision Blizzard.

The CMA rejected Microsoft’s acquisition plans for Activision Blizzard and King in April this year because it might hinder competition in the emerging cloud gaming market. Now, most regulators have approved the deal, including those in Brazil, China and the European Union.

According to the editor’s understanding, Microsoft expressed strong opposition to the CMA’s decision to block the transaction, believing that this move shakes people’s confidence in the UK as a destination for technology companies. Robin, Director of Public Relations at Microsoft Koch said they had lodged an appeal with the Competition Appeal Tribunal (CAT).

Battle between gaming giants: Microsoft fights CMA to acquire Activision Blizzard

Microsoft has appealed to the U.S. Federal Trade Commission against the FTC’s action to block the deal because the FTC believes the deal has the potential to stifle competition. Microsoft said it has received approvals from 37 countries, including the 27 EU countries and 10 other countries including China, Japan and Brazil. Microsoft emphasized that the acquisition will enable consumers around the world to play more games on more devices.

Microsoft has still not been successfully persuaded by the UK Competition and Markets Authority (CMA) and the US Federal Trade Commission (FTC). Although Microsoft recently received approval from EU regulators, the EU has attached some conditions to the deal, requiring Microsoft to license popular Activision Blizzard games to rival cloud gaming services to increase competition in the market.

Microsoft's only competitor in the console market, Sony, strongly opposed the deal, claiming that Microsoft planned to make Activision games exclusive to Xbox and PC, thus damaging the competitive nature of the market. Microsoft tried to offer Sony the same solution but was rejected. Currently, the FTC is still investigating the transaction, and a hearing is scheduled for August 2. For the UK market, Microsoft plans to appeal the decision.

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source:itbear.com
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