The largest ever takeover in the gaming industry remains questioned. Microsoft wants to take over game publisher Activision Blizzard for 60 billion euros, but British competition authorities rejected the deal today. The US supervisory authority has already filed a corresponding lawsuit.
UK regulator CMA said in a press release that it is particularly concerned about the future of cloud gaming, where a game (similar to music or a movie) is streamed to a device should the acquisition happen. Microsoft said it remains “fully committed” to the acquisition and will appeal the decision.
“Strong Position”
“Microsoft already has a strong position and competitive advantage in cloud gaming,” said Martin Coleman, who led the UK study. “This acquisition will strengthen that leadership and give it the ability to undermine new and innovative competitors.”
According to the CMA, Microsoft already has a 60 to 70 percent share of the global cloud gaming market. Consumers who play games this way don’t have to buy expensive game consoles or PCs, giving them “much more flexibility and choice in the way they play,” according to the regulator.
The deal between Microsoft and Activision Blizzard was announced last January. The CMA launched a full investigation in September of that year. A provisional decision taken in February of this year has now become final.
concerns not taken
In the process, Microsoft offered options to address regulators’ concerns. But these contain some shortcomings in the eyes of the CMA.
Another consideration was that the acceptance of Microsoft solutions meant that the CMA had to oversee that as well, while their rejection meant that the cloud gaming market could continue to evolve without interference.
Microsoft President Brad Smith said he was “disappointed, after lengthy discussion, that this decision reflects a lack of understanding of the market and how cloud technology actually works.”
Activision Blizzard said on appeal that it will work intensively with Microsoft to reverse that decision. Alongside the US and UK, the company is also awaiting EU approval. A decision on this is expected next month.
Source: NOS
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
