The United Kingdom has denied Microsoft’s $69 billion acquisition of Call of Duty creator Activision Blizzard
According to the UK regulator, the move is due to concerns that it would limit competition in the cloud gaming industry.
In a statement, the Competition and Markets Authority expressed apprehension that the acquisition would result in decreased innovation and fewer options for gamers in the UK in the foreseeable future.
It noted that Microsoft, which already has a 60%-70% share in the global cloud gaming market, would become even more dominant in the industry through the acquisition.
Microsoft’s president Brad Smith said in a statement the company remained fully committed to the acquisition and would appeal the decision.
Activision said it would “work aggressively” with Microsoft to reverse it.
The game development firm’s CEO Bobby Kotick reportedly told staff it was not “the news we wanted – but it is far from the final word on this deal”.
“We will reassess our growth plans for the UK,” said Activision in a separate statement. “Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”
Activision Blizzard is one of the major players in the video game industry. The company is known for developing popular games such as “Call of Duty,” “World of Warcraft,” “Diablo,” and “Overwatch.”
On the other hand, Microsoft, the company behind the Xbox gaming console, provides a video game subscription service named Xbox Game Pass, and a cloud-based video game streaming service.
Microsoft announced its Activision bid in January 2022 to strengthen its foothold in a competitive video gaming market, which is currently being led by Tencent and Sony.
The deal is reportedly the biggest involving technology companies that the CMA has blocked. Europe will decide on the Activision deal by May 22, while the US Federal Trade Commission is also reportely seeking to block it.
