UK Minister Backs CMA Decision to Block Microsoft-Activision Deal

The UK's Business and Trade Secretary, Kemi Badenoch, has come out in support of the Competition and Market Authority's (CMA) decision to halt the merger between Microsoft and Activision. This comes after Microsoft president Brad Smith stated that the CMA's block was detrimental to Britain, citing a flawed understanding of cloud streaming services. Badenoch countered Smith's remarks, emphasizing that the UK's decision was not an outlier considering the market size and that it was essential to make decisions that align with the country's best interests rather than simply following others. The minister noted that while the deal has been approved in Europe, it still requires clearance in the US, where Microsoft has been engaged in a legal battle with the Federal Trade Commission. Smith had previously criticized the CMA's decision, suggesting it would discourage innovation and investment in the UK. He highlighted Microsoft's long-standing contributions to the UK, including support for businesses, non-profits, and cybersecurity. The dispute underscores the regulatory challenges faced by Microsoft and Activision, with further details available in an extensive primer on the subject.