Tech News Summary:
- Microsoft is appealing against an earlier decision by Britain’s antitrust regulator, the Competition and Markets Authority (CMA), to block its $69 billion acquisition of Activision Blizzard, citing “fundamental errors” in the CMA’s assessment of Microsoft’s cloud gaming services.
- Microsoft has set out five grounds for appeal, including challenging the CMA’s understanding of the cloud gaming market and impact of the settlement.
- EU competition authorities approved the deal earlier this month, while British regulators rejected it, citing concerns about competition in the cloud gaming market.
Microsoft has launched a groundbreaking appeal in support of Activision against a UK regulator. The appeal aims to combat the regulator’s decision to block the acquisition of Activision by Microsoft, which was announced earlier this year.
The UK regulator, known as the Competition and Markets Authority (CMA), had previously raised concerns over potential loss of competition and innovation in the industry as a result of the acquisition. However, Microsoft has vehemently denied these claims and has argued that the deal would actually benefit the industry and consumers.
Microsoft’s appeal, which has been submitted to the Competition Appeal Tribunal (CAT), highlights the tech giant’s commitment to the gaming industry and the benefits that would arise from the combination of Microsoft and Activision’s capabilities. The appeal also challenges the CMA’s decision-making process and claims that the regulator has failed to fully consider all the relevant factors.
If successful, the acquisition would represent a major consolidation of power in the gaming industry, potentially giving Microsoft a significant competitive advantage over rivals such as Sony and Nintendo. The deal would also be one of the largest acquisitions in Microsoft’s history, with a reported price tag of $68.7 billion.
The appeal is expected to be closely watched by industry insiders and could have far-reaching implications for the gaming industry. Some experts have suggested that the outcome of the appeal could set a precedent for future mergers and acquisitions in the sector, particularly for companies with dominant market positions.
Microsoft’s appeal comes amid a flurry of activity in the gaming industry, with several high-profile deals and partnerships being announced in recent months. These include Sony’s acquisition of gaming studio Firesprite and Nvidia’s merger with chipmaker Arm.
The outcome of Microsoft’s appeal is expected to be announced in the coming months, following a full review of the case by the CAT.