Posted in: Activision, Blizzard, Games, Microsoft, Video Games | Tagged: activision, activision blizzard, Blizzard Entertainment, microsoft

UK To Block Microsoft's Activision Blizzard Acquisition

Microsoft runs into its first major block against the Activision Blizzard merger as the UK's CMA will be blocked by week's end.

Microsoft will be receiving some bad news at the end of the week in the UK, as one of the three major decision-makers could block the Activision Blizzard acquisition. This morning, the CMA (Competition and Markets Authority) released a statement about their impending decision, essentially letting the company know they would block the acquisition in the United Kingdom. The decision apparently came after the organization reviewed over three million Microsoft and Activision documents over the course of several months, as well as more than 2,100 emails from the public, ultimately concluding that the deal could alter the market and its growth for years to come. The organization stated at the top of the report that "The CMA has prevented Microsoft's proposed purchase of Activision over concerns 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."

In response to the news, Activision sent out a blanket statement to the press that reads as follows:

The CMA's report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal. The report's conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.

While it's clear they are going to appeal, that statement is very telling of how the company may push forward if approved elsewhere. Reuters reported last month that EU Regulators are likely to approve the deal, which is a major factor in this after the UK separated itself from the EU during Brexit. If the merger is approved and they move forward, it is quite conceivable that the company could shut down all game sales, services, and more to the UK until approval or at least a compromise is made. That said, Microsoft is still dealing with the FTC, which sued to block the acquisition back in December 2022, and they are currently still fighting to get their approval in the U.S.

We'll keep an eye on the situation to see how it develops, but right now, it looks like a lot of plans for the merger are still up in the air.

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