After many consequences and objections, the unexpected happened, and the UK authorities officially rejected Activision Blizzard’s acquisition. Microsoft’s rival companies, such as Google, Sony, Nvidia, and a big part of the PlayStation community, were against the deal. However, the deal was completed in a few countries for months and was likely getting approved in the EU. The news sounded good worldwide, but the authorities had the last word. We wonder how the company will keep its operations in the UK and how its rivals will benefit. Here are the details about the deal’s rejection.
UK Blocks Microsoft’s Activision Blizzard Deal
The main reason for all the concerns was the possibility of an unfair competition. That affected the consumers by not getting the CoD series on PlayStation or getting a poor version. Microsoft offered Sony a 10-year deal for the Call of Duty’s publishing on PlayStation, but that wasn’t enough. That is a risk for the gamers playing CoD games on PS, and it also means a few million dollars of loss for Sony. On the companies’ side, Nvidia and Google were concerned about their cloud-gaming operations -even though Stadia is closed, that’s already the reason for the rejection. There could be a few unrevealed reasons, but the government’s press release is about the unfair competition for cloud gaming.
We’ve prevented @Microsoft from purchasing @Activision over concerns the deal would damage competition in the #CloudGaming market, leading to less innovation and choice for UK #gamers. ☁️https://t.co/SdXt1rYAkZ pic.twitter.com/prWcDI7Evt
— Competition & Markets Authority (@CMAgovUK) April 26, 2023
“We remain fully committed to this acquisition and will appeal,” Microsoft president Brad Smith said in a statement after the ruling. “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.”
“We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies,” the Microsoft head continued. “We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”
The Activision Blizzard deal’s rejection in the UK doesn’t mean it’s valid everywhere. Each country’s authorities review the deal and make their decisions. If you’re not buying stock from one of those companies in relation, it only makes sense when we hope for the best for the players.
What are your thoughts about the acquisition’s rejection?