UK blocks Microsofts planned $68.7B Activision bid, saying it would substantially weaken competition

News Summary

  • However, the CMA has taken the position that Microsoft’s proposals can’t replace the existing “competitive dynamism,” and would merely compensate for the loss of competition through “obligations that would regulate its behaviour” for 10 years only.The CMA wrote:We had to consider how best to remedy these concerns.
  • Preventing the merger would preserve the competitive dynamism and level of innovation that exists in the growing cloud gaming market.
  • We decided, therefore, that a remedy that preserves competition, rather than one that imposes global regulatory oversight, is the only effective and proportionate way forward.Activision Blizzard, for its part, does not mince its words in response to today’s news.
  • This includes the U.S., where the Federal Trade Commission (FTC) is suing to block the deal, though Microsoft did recently secure a dismissal in a separate private antitrust lawsuit brought about by gamers.Elsewhere, Europe has been mulling an in-depth probe for some time already.
  • Global innovators large and small will take note that — despite all its rhetoric — the U.K. is clearly closed for business.”It’s worth noting that the acquisition faces scrutiny in other regions around the world.
  • The European Commission (EC) had previously set a provisional deadline of 25th April to announce a decision, but this was recently moved to May 22.
The U.K.s Competition and Markets Authority (CMA) has confirmed that it intends to block Microsofts megabucks Activision acquisition, concluding that such a merger would create the most powerfulop [+3795 chars]