Even though it had previously seemed like the UK’s CMA would approve Microsoft’s attempted purchase of Activision Blizzard King, and that though the FTC is suing over the deal, Microsoft could still jump that hurdle, the CMA announced it would block the deal on Wednesday.It wasn’t the news Microsoft or Activision Blizzard King wanted to hear, and both companies made that fact known, with Microsoft president Brad Smith, Activision’s Lulu Cheng Meservey and of course, Bobby Kotick speaking out against the decision.Kotick for his part has even gone as far now to allude that the FTC and the UK CMA spoke about the Microsoft/Activision Blizzard case at a meeting just prior to the CMA’s decision going public.“I was surprised to learn that Lina Khan and the head of the CMA had a meeting a week and a half ago in Washington. You know, legally, you’re not supposed to be discussing active litigation. I don’t know that they did.I think that that’s what you’re seeing now is that the CMA is being used as a tool by the FTC to be able to create these kinds of outcomes, and it this isn’t the way that they’re supposed to be operating.”Kotick claims are correct in that both parties would potentially be crossing a line if the case was discussed, the FTC has now responded, and denied the allegation entirely.One FTC official who was at the meeting though was not permitted to speak on record about reportedly claimed that they did not talk about mergers or any other active investigations.Another spokesperson, Douglas Farrar, who did not attend the meeting said “The FTC absolutely did not collude with the CMA or any other international regulator on any proposed merger review.When a deal appears blatantly anticompetitive then independent antitrust regulators can simply make their own judgements.”He added that the FTC “has for decades under both Republican and Democratic Chairs, a practice long welcomed by the business community. But we never outsource our authority.”The CMA’s decision report does however include “We have also been conscious of the international context, and have consulted with other competition authorities, including in the EU and the US.”Furthermore FTC guidelines add “U.S and foreign competition authorities may cooperate in investigating cross-border conduct that has an impact on U.S consumers,” which this deal ultimately would.Though Sony has been quite vocal throughout this whole ordeal, it has been silent on the CMA’s block decision so far.Source – [Reuters, TweakTown]
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