2023-04-26 11:23:00
The $69 billion marriage between the two giants would hamper competition in the nascent cloud gaming industry, UK antitrust says. Microsoft and Activision announce appeal.
Par
Chloe Woitier
et AFP agency
Published update
The UK competition authority (CMA) has decided to block the $69 billion merger between the giants of Microsoft and Activision Blizzard online video games, citing the risks of excessive sectoral concentration that this mega operation induces in the United Kingdom. “It’s not the decision we expected – but it’s not the end of this operation», writes the CEO of Activision, Bobby Kotick. Microsoft and Activision will appeal the decision.
The CMA said “fears the deal will change the future of the cloud gaming market“, a nascent but rapidly growing sector, “leading to reduced innovation and less choice for UK gamers in years to come“, According to a press release from the regulator on Wednesday.
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Cloud gaming uses streaming technology to allow games to be played on any connected screen using a very high speed connection. The CMA fears that Microsoft is gaining a decisive competitive advantage in this market, and hindering the future development of competing services, thanks to its stranglehold on the catalog of Activision-Blizzard games.
Appeal from Microsoft and Activision
The CMA had previously ruled out the risk that this takeover would represent for the video game console market, considering that Microsoft would have no economic interest in making Activision’s largest licenses exclusive to its Xbox console.
Microsoft and Activision immediately announced that they are appealing this decision. “We are particularly disappointed that following much deliberation, this decision appears to reflect a misunderstanding of this market. [du cloud gaming] and how the technology in question actually worksMicrosoft President Brad Smith said in a statement.
Activision for its part fired arrows once morest London. “The CMA report contradicts the ambitions of the United Kingdom to become an attractive country for the creation of technology companies. We will work vigorously with Microsoft to overturn this decision on appeal.“Said a spokesperson for the video game publisher. “The report’s findings do a disservice to British citizens, who face an increasingly bleak economic outlook. We will reassess our growth plans for the UK. Global innovators big and small will also take note that, for all its rhetoric, the UK is clearly out of business.»
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