'Closed for business': Microsoft and Activision lash out after UK blocks $104 billion merger

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The UK's competition authority refuses to allow Microsoft's multi-billion-dollar acquisition of Activision, ruling such market dominance would suppress innovation in new technologies like cloud gaming.

Microsoft and Activision have vowed to fight the blockMicrosoft owns 60-70 per cent of the cloud gaming market

Players subscribed to cloud gaming services are presented with a library of games they can play at an instant, with no installation or hard drive space requirements. All that's needed is a steady internet connection. Microsoft owns the Xbox gaming console, as well as Windows, the operating system on which PC games are played.

"Cloud gaming needs a free, competitive market to drive innovation and choice," chairperson Martin Coleman said. "Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal," Mr Kotick said. In 2020, Microsoft acquired Bethesda in a $9 billion deal, and has said its next three major games from the developer would be exclusive to its Xbox and PC platforms.There are just three major companies that have dominated the gaming industry for the past 20 years – Microsoft , Sony and Nintendo .

 

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