U.K. blocks $69 billion Microsoft-Blizzard merger

The authority said Microsoft’s share of the cloud gaming market is so huge, adding Activision-Blizzard would create a “most powerful operator.”

Cloud gaming is where a customer can stream a game directly from a company’s server in an on-demand style. The CMA originally focused its antitrust investigation on the prospect that the deal would limit competition and options for console gamers on the Sony PlayStation, Microsoft’s biggest competitor. However, this decision marks a clear departure from a console gaming focus to that of cloud gaming.

The U.K. agency noted that Microsoft has a 60% cloud market share in the country. Due to the proliferation of the Windows operating system, owned by Microsoft, the company’s cloud gaming infrastructure is unrivaled.“We remain fully committed to this acquisition and will appeal. The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom,” Mr. Smith said in a statement.

Activision-Blizzard echoed the executive’s statement. The gaming company said it will join Microsoft in appealing the decision.In the U.S., the Federal Trade Commission is suing to block the deal. The FTC pointed to how a merger of this size would hurt competition.• Vaughn Cockayne can be reached at

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Britain blocks Microsoft's $69 billion acquisition of Activision BlizzardBritain's top competition regulator on Wednesday moved to block Microsoft's acquisition of video game publisher Activision Blizzard.
Source: CNBC - 🏆 12. / 72 Read more »

UK blocks Microsoft $69 billion Activision deal over cloud gaming concernsBritain said it would block Microsoft's $69 billion acquisition of 'Call of Duty' maker Activision Blizzard over its concerns it would hinder competition in cloud gaming.
Source: Reuters - 🏆 2. / 97 Read more »

UK blocks Microsoft’s $69 billion Activision dealThe veto by Britain’s antitrust watchdog is a potentially fatal blow for the gaming industry’s biggest ever deal.
Source: ladailynews - 🏆 332. / 59 Read more »

Microsoft preparing to close Activision deal despite FTC suit: sourcesMicrosoft is making plans to complete its $69 billion acquisition of Activision Blizzard — despite the Federal Trade Commission’s December move to block the deal over antitrust concerns, The …
Source: nypost - 🏆 91. / 67 Read more »