Microsoft’s Activision Blizzard acquisition blocked by UK regulators

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Microsoft says it will appeal the decision

last month, noting that it would be costly for Microsoft to withhold the popular franchise from PlayStation. That left some cloud gaming concerns on the table, but the regulator says it considered whether the benefit of having Activision’s content on Game Pass outweighed the concerns around cloud gaming in the UK.

“Microsoft engaged constructively with us to try to address these issues and we are grateful for that, but their proposals were not effective to remedy our concerns and would have replaced competition with ineffective regulation in a new and dynamic market,” says Martin Coleman, chair of the independent panel of experts conducting the investigation.

Microsoft now says it will appeal the decision. “We remain fully committed to this acquisition and will appeal,” says Microsoft president Brad Smith in a statement to. “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.

A Microsoft appeal will push back the company’s plans to try and get this deal over the line by the end of July. Microsoft had originally planned to close the deal by July 18th and it will now be forced to negotiate an extension to the merger agreement. If Microsoft’s CMA appeal fails or it fails to get approval from other regulators it will owe Activision $3 billion in break up fees.

Regulators in Saudi Arabia, Brazil, Chile, Serbia, Japan, and South Africa have all approved the deal. The EU is set to make a decision by May 22nd, with

 

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