The UK regulator, the Competition and Markets Authority (CMA), has dropped one of its key concerns regarding Microsoft’s €70bn acquisition of gaming giant Activision Blizzard. This development is a significant boost for the tech giant, which has been working to secure regulatory approval from multiple jurisdictions. Microsoft’s move to buy Activision is its most significant acquisition to date and is set to be a game-changer for the gaming industry, putting Microsoft at the forefront of the industry. In this article, we will explore the CMA’s decision and how it impacts Microsoft’s acquisition of Activision Blizzard.
The UK’s competition regulator has removed a major concern regarding the $75 billion acquisition of video game maker Activision Blizzard by Microsoft. The Competition and Markets Authority, after reviewing “new evidence,” has said that there is no longer a risk of a “substantial lessening of competition” in the console market, thus easing the path to approval for Microsoft. However, the regulator is still investigating the impact on competition in cloud gaming, which is now the EU’s primary focus. The US Federal Trade Commission remains the largest remaining barrier for Microsoft. The CMA’s reversal came after Microsoft accused the agency of making mistakes in its financial modelling. One antitrust lawyer said the decision was extremely unusual.
In conclusion, Microsoft’s €70bn acquisition of Activision has been cleared by UK regulators as they drop their concerns over competition issues. Despite this move, the deal is still being scrutinised by regulators in both the US and Europe, highlighting the importance of a thorough regulatory process. This deal will undoubtedly have significant implications for the gaming industry, and it will be interesting to see how the acquisition unfolds in the future. We will continue to monitor the situation and provide updates as they arise.
