Europe’s approval of the Microsoft Activision deal yesterday prompted a rare response from UK’s Competition and Markets Authority (CMA). The EU regulator’s British counterpart disagreed with the decision to allow the acquisition to go ahead in the region, and doubled down on its own decision to block it.
UK “stands by its decision” to block Microsoft Activision deal
In an interesting turn of events, EU actually shared the same concerns that CMA put forth with regards to Microsoft’s dominance in cloud gaming. However, both regulators differ over the remedies proposed.
The remedy accepted by the EU mandates Microsoft to automatically allow cloud competitors access to Activision Blizzard’s catalog, especially Call of Duty, for 10 years. Additionally, gamers will be given a free license to stream the games on any device that they want. The UK is of the view that since cloud gaming is a nascent market, such remedies would allow Microsoft to “set the terms and conditions for this market for the next 10 years.”
Our response to the European Commission’s announcement today on Microsoft/Activision ⬇[1/5]— Competition & Markets Authority (@CMAgovUK) May 15, 2023
While CMA “respects” EU’s position, it “stands by its decision” and has no plans to budge. This could pose a problem for Microsoft because UK’s approval is mandatory for the deal to go through.
Both Microsoft and Activision Blizzard have hired high-profile lawyers to appeal CMA’s decision.