UK Regulator Seeks to Revive Cloud Gaming Investigation

The Competition and Markets Authority of the UK is set to appeal for the resumption of its probe into the cloud gaming and mobile browser sectors today. In November 2022, the regulator had announced plans for a Phase 2 investigation to determine if Apple and Google's dominance in mobile web browsers stifles competition, as well as to assess the impact of Apple's restrictions on cloud gaming services on its iOS platform. However, following complaints from Apple and Google, and a disagreement with the UK's Competition Appeal Tribunal, the investigation was put on hold earlier this year. The Court of Appeal has since granted the regulator permission to appeal this decision, with a hearing scheduled for today. The investigation remains suspended until the Court delivers its verdict. A key concern for the Tribunal was the regulator's failure to initiate the investigation by the December 14, 2021 deadline. Although the probe into mobile web browsers is unlikely to affect gaming companies, a thorough examination of Apple's cloud gaming restrictions could significantly impact the emerging cloud gaming sector. The regulator had previously cited cloud gaming concerns when blocking Microsoft's proposed acquisition of Activision Blizzard, prompting Microsoft to propose a revised deal involving the sale of cloud gaming rights for Activision Blizzard's games to Ubisoft. The Competition and Markets Authority has given provisional approval to this revised deal, with a final decision expected by the end of the week.