UK's CMA is preventing Microsoft's acquisition of Activision Blizzard

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The seemingly endless saga of the Microsoft-Activision buyout continues, with a new update from the United Kingdom. The country's Competition and Markets Authority (CMA) has prevented Microsoft's acquisition of Activision Blizzard, over concerns of the buyout resulting in competition problems. While the CMA did side with Microsoft last month, that was on the grounds of competition in console gaming--this time around, the decision was made after considering the cloud gaming market, which it believed the merger would "damage competition [...] leading to less innovation and choice" by having all of Activision's library available on Xbox Game Pass.

The CMA carefully considered whether the benefit of having Activision’s content available on Game Pass outweighed the harm that the merger would cause to competition in cloud gaming in the UK. The CMA found that this new payment option, while beneficial to some customers, would not outweigh the overall harm to competition (and, ultimately, UK gamers) arising from this merger, particularly given the incentive for Microsoft to increase the cost of a Game Pass subscription post-merger to reflect the addition of Activision’s valuable games.

Directly following the CMA's decision, stocks of Activision Blizzard fell as much as 8%. Microsoft stated that they would be appealing the decision, however, the deal would still need to be passed by similar regulators in the US and EU, which it is currently struggling to do so, regardless of the decision made by the UK, though it has been initially approved by Japan, Brazil, and South Africa. Should acquisition be impossible, or talks break down completely, Microsoft will owe Activision a whopping $3 billion, as a result of having to terminate the merger contract.

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.

Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job.

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tabzer

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My personal opinion it's a good thing really Xbox are a dodgy company back in the day Rare mostly made games for Nintendo

Xbox bought them
Sony gets Exclusives from Bethesda
Xbox buys them
Sony also have somewhat of exclusivity with Activision where crash trilogy released early and Call Of Duty games have been getting given away as part of PSN+ as well as some exclusive content and then suddenly Xbox wanted to buy them.

Xbox can't compete with there own studios and as of now honestly don't even think they know what there doing I mean fable given to a studio with no experience in that style of game also Halo Infinite was a mess when shown off where they postponed it and yet Xbox have all these studios but laid off 1000's of Devs I mean where is hell blade 2, Fable and more so many games have been shown off but still nothing at all I mean what is Rare working on now? As far as I'm aware nothing unless sea of thieves.

Honestly don't think Xbox should be allowed to acquire more studios tbh I also think Xbox is damaging the gaming industry with the whole game pass and other stupid things like launching so many consoles with different specs Devs honestly wouldn't want to be supporting them all.

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Since the dawn of Windows, MS has been in the monopoly business of buying out the competition. Monopoly is bad. I know because I played the game. I don't need to rent an entire hotel.
 

Flame

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So like can every country in the world that these companies operate in try to put a stop on their merger?

At what point are they infringing on US sovereignty by impeding the merger of two US companies

Dont threatening us like that bro. we got nukes too bro.

:sad:

i thought we was friends? rememeber Iraq? where we went to get the WMD off the streets?

Where UN was like you cant do this! we was like sun never sets on my empire bruh! you was like, USA fuck yeah!

Then 20 years later russia invaded ukraine. and they was like fuck ukraines sovereignty.

then we couldnt talk because we had no right to talk about sovereignty becuase of hypocrisy? even tho Putin is a hoe's son.

:cry::cry::cry:
 

Maximumbeans

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So like can every country in the world that these companies operate in try to put a stop on their merger?

At what point are they infringing on US sovereignty by impeding the merger of two US companies
I was surprised to learn that all it takes is one country to do this and the whole thing collapses.
 
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Kioku

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I was surprised to learn that all it takes is one country to do this and the whole thing collapses.
I’m okay with this, if I’m honest. If they left it up to the US, we’d all be screwed.
 
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Skelletonike

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Tbf, I want this to go through, mostly to spite Sony.

Personally I have no issues with Microsoft, while Sony has annoying me quite a bit lately. I mean, even Nintendo has less censorship than Sony.
 
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AlexMCS

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I want Sony to focus back on the eastern crowd and JP (actual JRPG) games to be successful again, instead of this western wank of the last 10-15 years, and this would be a chance for that to happen.

Gaming companies should strive to find a niche, not try to be a global encompassing monster like M$ will fail to be, since they waste most of the IPs they acquire.

I really want M$ to buy ABK so that WoW has some hope of thriving, instead of what is turning into.
 
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subcon959

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So like can every country in the world that these companies operate in try to put a stop on their merger?

At what point are they infringing on US sovereignty by impeding the merger of two US companies
I want more countries in the world to have the balls to say a big fat NO to US corporations who think they can do whatever they want.
 

ZachariasBarnham

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I don't have a dog in the hunt since I don't really game on the XBox much nor do I own or play any of ActiBlizzKing's games. Last game I bought made by Activision was True Crime: New York City back in 2006.

But doesn't it seem weird that the same organization that is siding with Microsoft in the article posted by Chary on March 24, 2023 is now majorly against it? Also, given what I've learned about ActiBlizzKing's leadership in the last year or so, wouldn't Bobby Kotick still receive a massive payday if the buyout gets completely blocked? And, this thing still seems like a distraction from all the legal troubles that the company is facing.
 

Kioku

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I don't have a dog in the hunt since I don't really game on the XBox much nor do I own or play any of ActiBlizzKing's games. Last game I bought made by Activision was True Crime: New York City back in 2006.

But doesn't it seem weird that the same organization that is siding with Microsoft in the article posted by Chary on March 24, 2023 is now majorly against it? Also, given what I've learned about ActiBlizzKing's leadership in the last year or so, wouldn't Bobby Kotick still receive a massive payday if the buyout gets completely blocked? And, this thing still seems like a distraction from all the legal troubles that the company is facing.
I’d put money on somebody from the opposing side “convincing” the CMA that the deal would be bad in the long term. I’m far too skeptical to believe that this is in good faith.
 

Lumince

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I agree. I have a PS5,4,3,2 and 1 but I'm not a fan of Sony overall. Activision is just pure wank and Microsoft are the devil so they can go eat a whole big bag of dicks.
I used to have PS consoles, but the want/need for them no longer exists since I just game on my PC. I owned a PS5 since launch day and it was used MAYBE 5 times in total. Sold it off and put that money into my new PC build.
Activision and Blizzard both seem very scummy. The fact that well know people that were apart of those companies straight up bailed right before shit hit the fan shows how bad they are. Microsoft just ruins everything that they touch/buy and I don't think any Activision/Blizzard games need to be worse than they already are lol I'm SO glad to see that SOMEONE stepped in and said no to this deal.
 
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x65943

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I want more countries in the world to have the balls to say a big fat NO to US corporations who think they can do whatever they want.
Whatever they want being merging two US companies?

I can understand saying you can't do x or y here, but saying you can't merge two companies that aren't even UK companies is ridiculous

Imagine the uproar if the USA tried to stop two UK or French companies from merging...French would riot in the street
 
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chrisrlink

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oddly i wanted MS to aquire Actiblizz cause Phill showed intrest in Sierra (which activision only used once since they aquired it and made a episonic kings quest in 2015 POS) AND WHATS WITH sONY not getting the heat turned up with their aquasitions? nothing all of them went through is it the Japanese company card they pull everytime to get out of legal trouble? or maybe they have the Yakuza breaking arms and busting balls to prevent such blocks from occuring
 

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