The UK’s Competition and Markets Authority (CMA) has ruled against Microsoft’s $68.7 billion takeover of Blizzard Entertainment. According to the CMA, the potential Blizzard Entertainment deal would make Microsoft a dominant player in the cloud gaming space while in turn stifling competition and leaving UK gamers with fewer options in the coming years.
Cloud gaming needs a free, competitive marketplace to drive innovation and choice. Microsoft already has a strong position and edge over other competitors in cloud gaming, and this deal will enhance that advantage giving it the ability to undercut new and innovative competitors.” — Martin Coleman, CMA Panel Chair
CMA estimates that Microsoft accounts for 60-70% of global cloud gaming services across Windows and its Xbox portfolio, and also points to Microsoft’s potential to make Call of Duty games exclusive to Xbox Game Pass as the big hurdle that would lead to an unfair edge over competitors.
Microsoft and Activision Blizzard will appeal the CMA’s decision to the UK Competition Court of Appeal with both sides remaining committed to the acquisition. There are similar objections from the EU’s antitrust commission, so we’ll have to wait and see if the biggest deal in gaming really goes through.
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