UK Regulator blocks Microsoft's $68.7 billion acquisition of Activision Blizzard

The UK's Competition and Markets Authority (CMA) has blocked Microsoft's proposed $68.7 billion acquisition of Activision Blizzard, citing concerns that it could harm the future of the fast-growing cloud gaming market.

The CMA's investigation revealed that Microsoft's dominance of the cloud gaming sector, combined with exclusive access to popular franchises such as Call of Duty, Overwatch, and World of Warcraft, would have a negative impact on competition and innovation. The CMA stated:

"Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service"

Microsoft had attempted to address concerns by signing cloud gaming deals with several rivals, but the CMA ultimately decided to block the deal.

Microsoft plans to appeal the decision. Microsoft president Brad Smith said:

"We remain fully committed to this acquisition and will appeal"