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Microsoft Seeks Solutions for UK Approval of Activision Blizzard Acquisition
Microsoft’s $69 billion acquisition of Call of Duty maker Activision Blizzard was blocked by British competition authorities in April, in a decision that shocked the gaming industry. Microsoft has since appealed the decision, and the company’s president, Brad Smith, has expressed optimism that a solution can be found to gain UK approval for the deal. Speaking at the techUK Tech Policy Leadership conference in London, Smith said he was actively looking for solutions to address regulators’ concerns and solve any problems. He added that if the UK wants to impose regulatory requirements that go beyond those in the EU, Microsoft is willing to find ways to fulfill them.
Hopeful for a Positive Outcome
Despite the setback, Smith seemed hopeful that the outcome can change and has declined to comment on any meeting with the British government, following the veto on the deal. This acquisition is the biggest-ever deal in gaming, and Smith had previously warned that blocking the deal would shake the UK’s confidence as a destination for tech businesses.
Appeals Filed Against UK and US Authorities
In addition to appealing the UK’s decision, Microsoft has also appealed against the US Federal Trade Commission’s action seeking to block the deal, claiming that it would suppress competition. The EU’s competition authorities approved the deal in May after Microsoft proposed remedies that were broadly comparable to those it proposed in the UK.
Challenging the UK’s Decision on Fundamental Errors
Last month, Microsoft challenged Britain’s decision to block its takeover of Activision Blizzard on the grounds of fundamental errors in the assessment of Microsoft’s cloud gaming services. The company confirmed that it had filed an appeal against the ruling to the Competition Appeal Tribunal (CAT). According to the summary, Microsoft claimed that the CMA’s conclusion that the deal would lead to a substantial lessening of competition in the United Kingdom’s cloud gaming market was wrong.
Conclusion
In summary, Microsoft’s acquisition of Activision Blizzard is facing regulatory hurdles in both the UK and the US. Microsoft’s president, Brad Smith, is actively seeking solutions to address regulators’ concerns and solve any problems. The company has appealed the decisions of both the UK’s Competition and Markets Authority and the US Federal Trade Commission. Despite these challenges, Microsoft remains hopeful that a positive outcome can be achieved.
FAQs
What was Microsoft’s proposed acquisition of Activision Blizzard?
Microsoft’s proposed $69 billion acquisition of Activision Blizzard, the maker of popular video games such as Call of Duty and World of Warcraft, would be the biggest-ever deal in the gaming industry.
Why was the acquisition blocked by UK competition authorities?
The UK’s Competition and Markets Authority (CMA) blocked the deal in April 2023, stating that it would lead to a substantial lessening of competition in the cloud gaming market. The CMA identified concerns that the deal would limit competition in cloud gaming, in which games are streamed remotely from servers rather than being played on consoles or PCs.
What is Microsoft doing to gain approval for the acquisition?
Microsoft is actively seeking solutions to address regulators’ concerns and solve any problems. The company has appealed the decisions of both the UK’s Competition and Markets Authority and the US Federal Trade Commission. Microsoft has also expressed its willingness to find ways to fulfill regulatory requirements that go beyond those in the EU, if necessary.
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