of developer and publisher Activision, in a stunning turn of events. The move is a U-turn from when the government’s initial thoughts last month, when it had “a significant amount of new evidence” obtained by the British regulatory body in favour of the video game company.
The CMA says that its decision stop the Activision deal from going forward was also due to Microsoft failing to come up with another solution amidst concerns in the cloud gaming sector, after the previous proposal fell through the floor.The CMA’s move is a bit of a surprise, given that all the signs prior to this seem to point toward Microsoft’s favour, stating that such an acquisition would “not result in a substantial lessening of competition in relation to console gaming in the UK”.
It was not sufficiently open to providers who might wish to offer versions of games on PC operating systems other than Windows. It would standardise the terms and conditions on which games are available, as opposed to them being determined by the dynamism and creativity of competition in the market, as would be expected in the absence of the merger.
In a letter to PCGamer, Microsoft told the PC tech publication that it would be appealing the CMA’s decision to block its acquisition of Activision, stating that the move was made from a “flawed understanding of this market and the way the relevant cloud technology actually works”.