UK regulator criticises European Commission's decision to approve deal between Microsoft and Activision Blizzard
Yesterday it was reported that the European Commission has given its approval for the merger of Microsoft and Activision Blizzard, finding no danger to the video game industry in the deal.
While the team of Phil Spencer and Bobby Kotick are celebrating an interim but important victory, the UK Competition and Markets Authority (CMA), which had previously blocked the deal, has issued a statement.
Here's What We Know
British officials believe that Microsoft's long-term contracts with cloud services companies do not demonstrate the good intentions of the US corporation.
Contrary to the opinion of the European Commission, the CMA believes that controlling the cloud technology market will allow Microsoft to dictate its terms, which will inevitably lead to negative consequences and a monopoly on games not only from Activision Blizzard, but also other developers. In addition, the Brits do not rule out that by adding such big games as Call of Duty and Diablo to Game Pass, Microsoft will inevitably raise the cost of the subscription, with gamers suffering as a result.
The CMA acknowledges the right to their own opinion of EU regulators, but is confident that they have made a mistake in allowing the deal.
As a reminder, Microsoft intends to appeal against the CMA's decision, and if that fails, there is a possibility that the corporation will shut down its operations in the UK entirely.
Our response to the European Commission's announcement today on Microsoft/Activision ⬇
- Competition & Markets Authority (@CMAgovUK) May 15, 2023
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Source: CMA Twitter account
