The UK’s Competition and Markets Authority (CMA) has ruled against Microsoft’s $68.7 billion acquisition deal of Blizzard Entertainment. According to the CMA, the potential deal for Blizzard Entertainment would make Microsoft a dominant player in the cloud gaming sphere, in turn stifling competition and leaving UK gamers less choice in years to come.
Cloud gaming needs a free and competitive marketplace to drive innovation and choice. Microsoft already enjoys a strong position and advantage over other competitors in cloud gaming, and this deal would strengthen that advantage by giving it the ability to undermine new and innovative competitors.” – Martin Coleman, CMA Panel Chair
The CMA estimates that Microsoft accounts for 60-70% of global cloud gaming services through Windows and its Xbox portfolio, and also notes Microsoft’s ability to make Call of Duty games exclusive to its Xbox Game Pass service such as the great obstacle that would lead to an unfair advantage over competitors.
Microsoft and Activision Blizzard will appeal the CMA’s decision in the UK Competition Appeals Tribunal, with both parties remaining committed to the acquisition. There are similar objections from the EU’s antitrust commission, so we’ll have to wait and see if the biggest deal in the gaming industry actually goes down the drain.
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