Microsoft's Activision Blizzard Acquisition Blocked in the UK, Microsoft to Appeal Decision
21In today's Game News Roundup we discuss the latest VGChartz estimates and video game news, including the following:
- UK Blocks Microsoft's Activision Blizzard Acquisition, Microsoft to Appeal Decision
https://www.vgchartz.com/article/456994/uk-blocks-microsofts-activision-blizzard-acquisition-microsoft-to-appeal-decision/
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The UK regulator, Competition and Markets Authority (CMA), has released its final decision on Microsoft’s $67.8 billion acquisition of Activision Blizzard and decided to block the deal over concerns with cloud gaming.
The CMA is concerned the "deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come."
The CMA states that "Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service.
"Microsoft already accounts for an estimated 60-70% of global cloud gaming services and has other important strengths in cloud gaming from owning Xbox, the leading PC operating system (Windows) and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming)."
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The CMA said Microsoft submitted behavioral remedies to address concerns, which the regulator examined in depth. The conclusion is the proposed remedies "contained a number of significant shortcomings connected with the growing and fast-moving nature of cloud gaming services." The shortcomings included the following via the CMA press release:
- It did not sufficiently cover different cloud gaming service business models, including multigame subscription services.
- It was not sufficiently open to providers who might wish to offer versions of games on PC operating systems other than Windows.
- It would standardise the terms and conditions on which games are available, as opposed to them being determined by the dynamism and creativity of competition in the market, as would be expected in the absence of the merger.
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The Vice Chair and President of Microsoft Brad Smith in his own statement said that Microsoft remains fully committed to its acquisition of Activision Blizzard and will appeal the decision by the CMA.
"We remain fully committed to this acquisition and will appeal," said Smith. "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."
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Activision Blizzard CEO Bobby Kotick said the CMA decision is "far from the final word on this deal." They will work alongside Microsoft to "contest this decision" and have "already begun the work to appeal to the UK Competition Appeals Tribunal."
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Hello, I am TrunksWD, but you can call me William. This YouTube channel is mainly a gaming let's play channel where I play games solo and with friends. However, there are some different style of videos such as vlogs. Be sure to leave any suggestions about different games I can play or advice in the comments section down below.
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