UK's CMA On The European Commission Approval Of Microsoft And Activision Deal: 'We Stand By Our Decision'
The U.K. Competition & Markets Authority (CMA) issued a strong response to the European Commission's approval of the $68.7 billion proposed merger between Microsoft Corp. (NASDAQ: MSFT) and Activision Blizzard Inc. (NASDAQ: ATVI).
In a statement released on Twitter, the CMA emphasized the need for cloud gaming to remain an open and competitive market, as well as remaining steadfast on its decision to block the deal.
"The U.K., U.S., and European competition authorities are unanimous that this merger would harm competition in cloud gaming. The CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector," the antitrust regulator wrote.
Moreover, the authority stated it firmly believed that accepting Microsoft's proposition would grant the tech giant the power to dictate market terms and conditions for the next 10 years, hindering competition.
"They would replace a free, open, and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale," the CMA continued.
The ministerial government department reassured its verdict and concluded: "This is one of the reasons the CMA’s independent panel group rejected Microsoft’s proposals and prevented this deal. While we recognize and respect that the European Commission is entitled to take a different view, the CMA stands by its decision."
Our response to the European Commission's announcement today on Microsoft/Activision ⬇
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— Competition & Markets Authority (@CMAgovUK) May 15, 2023
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