Microsoft’s takeover of Activision Blizzard has already been approved in many countries. But it was actually blocked in the UK. Microsoft is fighting that, saying “fundamental errors” were made.
Recently, the UK Competition and Markets Authority (CMA) decided to block Microsoft’s acquisition of Activision Blizzard. Microsoft naturally disagreed and immediately announced that it would appeal. Last week, the time came and now it is also clear exactly what Microsoft’s objections are.
Microsoft claims that the CMA made fundamental errors in assessing Microsoft’s position in the cloud gaming market. The CMA would view cloud gaming too much as something separate from native gaming (gaming where your games are installed on the device you play them with). People who play via the could may decide to switch to native gaming, Microsoft believes.
The CMA also failed to include three important agreements, according to Microsoft. Namely, those guarantee that all Microsoft’s games will continue to appear on competing cloud services for 10 years. Those deals were a major reason the EU agreed to the Activision Blizzard acquisition.
Activision Blizzard deal could be months away
Despite many countries agreeing to the Activision Blizzard takeover, it could still take a while before everything is finalised. The appeal against the CMA could still take months, and in the meantime a court case is also under way in the US to block the deal. The first grossest hearing in that case is not until late summer.