UK’s Competition and Markets Authority (CMA) blocked Microsoft’s $69 billion acquisition of Activision Blizzard concerns about the deal’s impact on competition in the cloud gaming market. Microsoft, on the other hand, is not going down without a fight and has reportedly hired Daniel Beard KC, a prominent lawyer known for defeating EU regulator in competition cases, to appeal CMA’s decision.
Microsoft’s acquisition of Activision Blizzard was one of the most anticipated deals in the global gaming industry. The CMA’s decision to block the merger last month surprised many people. Microsoft is now taking legal action to overturn the decision and ensure the successful completion of the transaction.
Microsoft’s acquisition of Activision Blizzard aimed to create a gaming powerhouse by combining Microsoft’s technological expertise with Activision Blizzard’s vast gaming portfolio. Microsoft would have gained control of popular franchises like Call of Duty, World of Warcraft, and Candy Crush.
CMA expressed concern about the potential negative impact on competition that the cloud gaming market might cause. The authority believed that the deal could limit innovation and reduce choice for UK gamers in the long run. As a result, the CMA blocked the acquisition, putting the deal on hold.
To legal battle against CMA’s decision, Microsoft hires Daniel Beard KC, a renowned competition barrister known for his success in overturning major decisions made by the EU regulator. Beard has a proven track record, representing companies like Apple and Intel in their legal battles against the EU.
Beard’s most notable victory was representing Apple in its appeal against the EU’s demand for a €13 billion tax payment. He also successfully assisted Intel in overturning a €1.1 billion fine imposed by the EU for alleged unfair dominance in the microchip market. Microsoft hopes that Beard’s expertise will help them win the appeal and proceed with the acquisition.
The Competition Appeal Tribunal in the UK will hear Microsoft’s appeal. In a few days, the company is anticipated to file the appeal. EU also look into acquisition at the same time. And a decision is expected to come in next two weeks. EU will likely approve the deal, according to sources familiar with the inquiry. But there are still some questions before a formal announcement.
Microsoft is struggling with legal challenges in the US in addition to regulatory difficulties in the UK and the EU. Federal Trade Commission in the United States declared in December that it intended to sue Microsoft to prevent the deal due to concerns about impact on the market. In order to proceed with the acquisition, Microsoft must now fight legal battles on several fronts.
CMA’s decision to block the acquisition was primarily driven by concerns over competition in the cloud gaming market. The authority expressed apprehension that the merger could lead to reduced innovation and less choice for gamers in the UK over time. They emphasized the importance of maintaining a competitive landscape in the gaming industry.
Microsoft, on the other hand, strongly disagrees with the CMA’s decision and thinks it shows a lack of knowledge of the market and the relevant technology. The company is disappointed by the decision, but Microsoft’s president, Brad Smith, is upbeat about the acquisition’s advantages for the gaming industry.
Microsoft argues that the merger would enable them to leverage their expertise in cloud technology to enhance the gaming experience for players. The company envisions a future where cloud gaming provides seamless and immersive gameplay across a variety of devices, allowing gamers to access their favorite titles anytime, anywhere.
The battle to acquire Activision Blizzard continues as Microsoft seeks to overturn the UK regulator’s decision with the help of renowned competition barrister Daniel Beard KC. The appeal process, which will take place at the UK’s Competition Appeal Tribunal, is expected to unfold in the coming days.
