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UK regulators block Microsoft's Activision acquisition in potentially fatal surprise blow

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'Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities'.

a statement made today

To many onlookers, that announcement appeared to set the stage for an approval this month, which would in turn clear the way forThe CMA said that Microsoft, which already"accounts for an estimated 60-70% of global cloud gaming services," would"find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service" in the event the acquisition went through.

"It did not sufficiently cover different cloud gaming service business models, including multigame subscription services". The CMA also decided that the addition of Activision Blizzard games to Game Pass"would not outweigh the overall harm to competition ".I've contacted Microsoft and Activision for comment on the decision, and I'll update this piece if I hear back.

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