Microsoft has received support in its legal battle with the British competition authority, the Competition and Markets Authority (CMA), over the Activision deal. Activision Blizzard has been given permission to join the negotiations between Microsoft and the CMA. The CMA has blocked the takeover so far, claiming that Microsoft has not addressed concerns of dominant market position in the cloud gaming sector. While the EU has cleared the acquisition, negotiations are still pending for Microsoft in Britain.
Microsoft President, Brad Smith, and representatives of the CMA are set to meet for talks next week as part of London Tech Week. Activision Blizzard is also participating in a hearing before the Competition Appeal Tribunal, which has the power to overturn the CMA’s rulings and allow for the proposed $69 billion takeover despite CMA concerns.
Sony CEO, Kenichiro Yoshida, has previously commented on the problems with cloud gaming. While the CMA has no concerns about the console market, their blockade of the acquisition has impacted Microsoft’s plans. Microsoft has appealed against the CMA’s decision and has expressed its desire to allay their concerns. If this acquisition falls through in the UK, Microsoft has discussed the withdrawal of Activision Blizzard from the country as an “extreme” measure.
Aside from UK regulatory hurdles, the US counterpart to the CMA, the Federal Trade Commission (FTC), also wants to block the takeover of Activision Blizzard. A first hearing is scheduled for August 2nd. Microsoft announced the acquisition in January 2022, and Activision’s hit first-person shooter, Call of Duty, has been a constant focus of discussion and concern from Sony.
