After its announcement in early 2022, the Microsoft Activision acquisition hit a snag as the deal was recently blocked by the UK.
Given how massive the acquisition is, Microsoft has been under scrutiny lately from regulatory bodies in various countries. Though things seemed to progress smoothly, the deal was struck a heavy blow as the UK’s Competition and Markets Authority (CMA) prevented the deal from happening.
So, what does this mean? Well, in simpler terms, large acquisitions such as this need the go-ahead from regulators in the US, UK, and EU. Now that the UK’s CMA has prevented the deal, it’s looking unlikely that it will actually happen. While the acquisition can still technically happen if other regulatory boards say it can, Microsoft will have to pull out of the UK as the acquisition was prevented there. Take note, Microsoft as a whole and not just Xbox will need to pull out.
Why was it prevented then? Instead of it being about the console space, the UK’s CMA indicated that concerns about Microsoft potentially altering “the future of the fast-growing cloud gaming market” was the main reason why the deal was prevented.
As expected, Microsoft is not happy with this decision as its president had some harsh words following the decision. Though right now, things are not looking good given that a CMA decision has never been overturned yet after an appeal.
Of course, given that the Microsoft and Activision deal is such as huge acquisition, there will likely be more developments in the UK in the coming weeks and months.
Source: Gov.uk