Following the UK regulator’s announcement that it would block the Activision Blizzard acquisition, Microsoft has stated that it will be appealing the CMA’s decision to stop the deal going through.The CMA blocked the ABK acquisition on the grounds that it would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.” In a statement responding to the announcement, Microsoft president Brad Smith said that this rationale “appears to reflect a flawed understanding of this market and the way relevant cloud technology actually works.”Microsoft: “We remain fully committed to this acquisition”Smith hasn’t been the only one to declare opposition to the CMA’s ruling, with Activision boss Bobby Kotick also speaking out. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal,” he said. “We’re confident in our case because the facts are on our side: this deal is good for competition.” Kotick adds that the CMA’s decision “is far from the final word on this deal.”It remains to be seen how the FTC will rule on the deal in the US, but in the meantime, it sounds like the gears are already in motion for Microsoft and Activision Blizzard to try and overturn the CMA’s decision to block the deal. Kotick is right — this saga is far from over.What’s your take on these latest developments? Let us know!
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