News has dropped today that the Microsoft acquisition of Activision Blizzard has been blocked by UK authority. Here’s everything we know.
The attempted purchase of Activision Blizzard by Microsoft has been blocked as of today according to the UK’s Competition and Markets Authority. The announcement was made earlier today and details why the government agency believes the deal would have led to “less innovation and choice for UK gamers.”
Microsoft Acquisition of Activision Blizzard is Blocked
Additionally, it was believed this deal would have damaged competition in the cloud gaming market and so this was the best choice.
However, it has been revealed that the company will be appealing this decision. This news comes courtesy of a statement released by Microsoft president, Brad Smith.
“We remain fully committed to this acquisition and will appeal,” Smith announced. “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.”
“We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies,” he continued. “We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”
“The UK is clearly closed for business.”
A statement has also been released by Activision Blizzard who are not happy about the decision.
“We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects.” The statement reads. “We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”
This is shocking news considering the deal was expected to go through with the companies expecting to close the deal during today’s hearing. Additionally, appealing the decision will be another lengthy process.
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