The UK Blocks Microsoft's $69 billion Acquisition of Activision Blizzard

Microsoft’s plan to acquire Activision Blizzard, the maker of popular video games such as “Call of Duty”, “World of Warcraft” and “Candy Crush”, has hit a major roadblock in the UK. The Competition and Markets Authority (CMA), the country’s antitrust watchdog, has announced that it will block the deal over concerns that it would harm competition and innovation in the cloud gaming market.

Cloud gaming is a technology that allows users to stream games from remote servers without having to download or install them on their devices. It is seen as a fast-growing and lucrative segment of the gaming industry, as it offers convenience, accessibility and lower costs for gamers and developers.

Microsoft is one of the leading players in cloud gaming, with its Xbox Game Pass service that offers access to hundreds of games for a monthly fee. Activision Blizzard is one of the largest and most successful game publishers in the world, with a loyal fan base and a diverse portfolio of titles across genres and platforms.

The CMA said that the proposed merger would give Microsoft too much power and influence over the cloud gaming market, as it would be able to control access to some of the most popular and profitable games. The regulator said that this would reduce choice and quality for UK gamers, as well as stifle innovation and investment by rival cloud gaming providers.

The CMA also rejected Microsoft’s proposed remedies to address its concerns, such as offering access to Activision’s games to other cloud gaming platforms. The regulator said that these remedies were not sufficient or effective, as they would still depend on Microsoft’s willingness and ability to comply with them.

Microsoft said that it was disappointed by the CMA’s decision and that it would appeal it in court. The company said that it remained fully committed to the acquisition and that it believed that it would benefit gamers, developers and the industry as a whole.

The deal, which was announced in January 2023, is also under scrutiny by regulators in other jurisdictions, such as the US, EU and China. It is unclear how the UK’s move will affect the approval process in other markets.

The deal is one of the largest ($69 billion) and most ambitious in the history of the gaming industry, as it would create a powerhouse that could challenge other giants such as Sony, Nintendo and Tencent. It also reflects Microsoft’s strategy to expand its presence and influence in the entertainment sector, as well as its ambition to become a leader in cloud computing.