Microsoft and Activision Blizzard Refuse to Back Down

The UK's Competition and Markets Authority shocked the industry by blocking Microsoft's acquisition of Activision Blizzard, citing concerns over competition in the cloud gaming market. While the decision may not have been unexpected, the reactions from Microsoft and Activision Blizzard were telling. Microsoft released a statement expressing disappointment and promising to appeal, while Activision Blizzard took a more aggressive tone, threatening to reassess its growth plans in the UK and implying that the country was no longer a viable place to do business. This difference in approach is reflective of the two companies' distinct communication styles, with Microsoft generally taking a more measured and respectful approach, and Activision Blizzard being more aggressive and irreverent. The threatened consequences of the CMA's decision, including withholding business from the UK, are not entirely clear, but they do highlight the complex web of subsidiaries and tax havens that both companies use to minimize their tax liabilities. Ultimately, the ruling may have significant implications for the future of the tech industry in the UK, and the ways in which large companies interact with regulatory bodies.