The Competition and Markets Authority said it has prevented the mammoth deal over concerns in the cloud gaming sector.
Microsoft’s 68.7 billion dollar (£55 billion) takeover of gaming firm Activision Blizzard has been blocked by the UK competition watchdog.
The Competition and Markets Authority (CMA) said it has prevented the mammoth deal over concerns in the cloud gaming sector.
Xbox owner Microsoft struck a deal to buy the maker of Candy Crush and Call Of Duty in January 2022.
We’ve prevented @Microsoft from purchasing @Activision over concerns the deal would damage competition in the #CloudGaming market, leading to less innovation and choice for UK #gamers. ☁️https://t.co/SdXt1rYAkZ pic.twitter.com/prWcDI7Evt
— Competition & Markets Authority (@CMAgovUK) April 26, 2023
Martin Coleman, chair of the independent panel of experts conducting the CMA investigation, said: “Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage, giving it the ability to undermine new and innovative competitors.
“Microsoft engaged constructively with us to try to address these issues and we are grateful for that, but their proposals were not effective to remedy our concerns and would have replaced competition with ineffective regulation in a new and dynamic market.”
