UK Regulator Stands by Decision to Block Microsoft's Acquisition of Activision Blizzard

Before the UK's Business and Trade Committee, the Competition and Markets Authority reaffirmed its stance against Microsoft's proposed $68.7 billion acquisition of Activision Blizzard. As reported, the CMA's chair and chief executive addressed concerns that blocking the deal could harm the UK's global business reputation. In response, the chair emphasized the importance of promoting open competition in the market and vigilance against consolidating existing market power. The chair disputed the notion that the decision would impact international confidence in doing business in the UK, suggesting that allowing the acquisition would be tantamount to ignoring anti-competitive mergers. The committee also inquired about the differing conclusions between the CMA and the European Commission, which approved the deal. The CMA's chief executive explained that the decision was based on the regulator's refusal to accept Microsoft's proposed remedy to protect the cloud gaming market. While the European Commission shared concerns about competition, they accepted Microsoft's remedy, a decision the CMA did not deem appropriate from a UK perspective. The initial block was due to concerns over the deal's potential to alter the cloud gaming market's future. Additionally, the US Federal Trade Commission filed a lawsuit to stop the acquisition in December. For a comprehensive overview of the issues surrounding the proposed acquisition, refer to our detailed primer.