UK Regulator Blocks Microsoft And Activision Blizzard Deal
The UK Competition and Markets Authority has blocked a deal between Microsoft and Activision Blizzard. The regulator believes that the deal “would harm competition in the cloud gaming market.”
Microsoft President Brad Smith was disappointed by the decision and said the company would appeal. Previously, the company deliberately made concessions to the CMA, entering into multi-year agreements with cloud services for the release of Xbox and Activision Blizzard games on platforms.
Representatives of the CMA said that the agreements and other compromises proposed by Microsoft are not enough because: These contracts do not adequately cover the cloud gaming business, including subscription services and they are not open enough for those providers who would like to offer non-Windows versions of PC games.
In addition, the CMA believes that 10-year contracts make little sense in the current environment, since the cloud gaming market is very dynamic and constantly changing. Also CMA stated that Microsoft already has 60-70% of the user base of cloud services worldwide.
