The UK Competition and Markets Authority has announced that is blocking the Microsoft acquisition of Activision and their $68 billion deal. The CMA has said that the reason that the deal is being blocked is that the deal would change the cloud gaming market.
According to the CMA this will stop the deal from going ahead and you can see more information about what the Competition and Markets Authority had to say about their blocking of the Microsoft Activision deal at the link below.
Given the remedy applies only to a defined set of Activision games, which can be streamed only in a defined set of cloud gaming services, provided they are purchased in a defined set of online stores, there are significant risks of disagreement and conflict between Microsoft and cloud gaming service providers, particularly over a ten-year period in a rapidly changing market.
Accepting Microsoft’s remedy would inevitably require some degree of regulatory oversight by the CMA. By contrast, preventing the merger would effectively allow market forces to continue to operate and shape the development of cloud gaming without this regulatory intervention.
You can see the full report and decision from the UK Competition and Market Authority over at their website at the link below. It is not clear as yet on whether Microsoft and Activision will be appealing the decision.
Source CMA
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