Microsoft’s appeal against the UK’s CMA over the Activision Blizzard acquisition starts next week
The CMA has been the only regulator to actively block the acquisition to date, citing concerns over the Cloud gaming market.
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What you need to know
Update, May 26, 2023, at 3:15 p.m. CT —The UK’s Competition Appeal Tribunal (CAT) hasrevealedthat Microsoft’s appeal against the CMA over its ongoing Activision Blizzard acquisition will begin midday on Tuesday, May 30, 2023.
The announcement also includes a summary of Microsoft’s appeal, which lists the five grounds on which Microsoft is contesting the CMA’s decision to block the deal, including the CMA’s “fundamental errors” when calculating the size and impact of the cloud gaming market (and Microsoft’s position in it), failing to recognize Microsoft’s agreements with cloud gaming competitors, wrongfully concluding that Activision Blizzard’s library of games is vital to the success of cloud gaming and that those titles would come to cloud gaming competitors without the deal closing, not accepting Microsoft’s various attempts to remedy the situation with accommodations, and more. You can read the full summary at the link above.
In case you missed it, some information recently came to light that shows the CMA’s senior director, involved in the decision to block the Activision Blizzard acquisition,previously worked for a firm that is now assisting Sony in battling the Microsoft and Activision Blizzard deal, highlighting a potential conflict of interest. Florian Mueller, a prominent lawyer that helped discover the above information, has also provided their own analysis of Microsoft’s appeal onTwitter.
Our original article continues below.
Microsoft has confirmed that an appeal has been filed with the UK’s CAT, or Competition Appeal Tribunal, in an attempt to overturn theCMA’s ruling against the Activision Blizzard King acquisition, according to a tweet from Bloomberg reporter Katharine Gemmel.
A Microsoft spokesperson has confirmed the company has formally filed its appeal against the UK antitrust watchdog’s decision to block its $69 billion Activision Blizzard deal. On Terminal.May 24, 2023
Microsoft’s acquisition of Activision Blizzard King had come under heavy scrutiny from the UK’s regulatory body, who first expressed concerns over the Call of Duty franchise beforepivoting their argumentsagainst the merger to Xbox’s dominance in the cloud gaming market. Microsoft had attempted to assuage these concerns over cloud gaming by striking deals with a multitude of othercloud gaming platforms to bring Xbox titles to their services, including Activision Blizzard King titles that otherwise would not reach cloud markets.The CMA was unmoved by these efforts, however, and ultimately struck down the acquisition in its ruling.
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The CMA has been the only regulatory body to rule against Microsoft and Activision Blizzard King. TheEuropean Union has approved the acquisition, stating that Microsoft’s remedies of their concerns regarding the cloud market were sufficient to allow the deal to close. The CMA reacted by issuing a statement that the EU was wrong to approve the merger. In the US, theFTC has filed a lawsuit against the acquisition, but opted not to file for an injunction that would actually prevent the merger from closing.
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The CMA’s ruling againstthe ABK deal has become a political hot point for the UK, but Microsoft has continued to confirm their commitment to fighting for the acquisition to close in their favor and to add the expansive Activision Blizzard portfolio to its first-party roster of thebest Xbox games.
Call of Duty: Modern Warfare 2Xbox may be struggling to acquire Call of Duty publisher Activision Blizzard King, but you can still add COD to your Xbox library without interference from any regulators.Available now:Xbox
Cole is the resident Call of Duty know-it-all and indie game enthusiast for Windows Central. She’s a lifelong artist with two decades of experience in digital painting, and she will happily talk your ear off about budget pen displays.