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.

Source

 

[ombus]

Nah, fuck this whole monopoly they have going on. We need a lawfirm to break Microsoft up, if anything. They've bought up too much shit. Who's next on their list to gobble up? Sega? Capcom? Epic? Where and when will it end? If one company owns everything (except for Nintendo, they'd never sell out) then there won't be any competition. That's BAD for us consumers!!!

So.. what has happened after all these purchases ?... heck they added value to the game pass.. people say its bad etc.. i have yet to see something that actually happened.

 

[subcon959]

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

Funny you use those as an example as I seem to recall US regulators blocking a merger between a French company and a UK company in the past. It's been this way for a long time.

 

[Kioku]

So.. what has happened after all these purchases ?... heck they added value to the game pass.. people say its bad etc.. i have yet to see something that actually happened.

I’m more concerned that people are crying “monopoly” just because Microsoft is looking to expand. Even more confusing is that when Sony gobbles up companies there really isn’t an outrage..

 

[x65943]

Funny you use those as an example as I seem to recall US regulators blocking a merger between a French company and a UK company in the past. It's been this way for a long time.

Interesting, what were the companies? Link?

 

[Jayro]

I’m more concerned that people are crying “monopoly” just because Microsoft is looking to expand. Even more confusing is that when Sony gobbles up companies there really isn’t an outrage..

Compare their assets, it's not even funny how much more shit Microsoft owns.

So.. what has happened after all these purchases ?... heck they added value to the game pass.. people say its bad etc.. i have yet to see something that actually happened.

Take cellular companies for example. We had tons of little companies, all offering nice cheap plans, and we had larger companies offering the mainstream higher priced plans. Now the larger companies have started merging and gobbled up all the smaller companies, and we just have the major players left: at&t, Verizon, and etc. As consumers, we lose. Same thing happens when Microsoft and Sony own everything. We can't support smaller and cheaper companies anymore because they're all owned by the larger corporations.

 

[Kioku]

w

Compare their assets, it's not even funny how much more shit Microsoft owns.


Take cellular companies for example. We had tons of little companies, all offering nice cheap plans, and we had larger companies offering the mainstream higher priced plans. Now the larger companies have started merging and gobbled up all the smaller companies, and we just have the major players left: at&t, Verizon, and etc. As consumers, we lose. Same thing happens when Microsoft and Sony own everything. We can't support smaller and cheaper companies anymore because they're all owned by the larger corporations.

Just seems like you have a vendetta...

To no extent should this surprise you, or anyone for that matter. However, big businesses only want to get bigger. They want more because they can't satiate themselves enough. This isn't going to stop anytime soon. Especially not if we keep buying their products. The MVNOs being bought up are a prime example. They didn't need to sell to Verizon, T-Mobile, or AT&T... but they did. The guys walking out get a fat check and they no longer have to head the business. Mr. Krabbs said it best when he said: "I like money."

 

[x65943]

Compare their assets, it's not even funny how much more shit Microsoft owns.


Take cellular companies for example. We had tons of little companies, all offering nice cheap plans, and we had larger companies offering the mainstream higher priced plans. Now the larger companies have started merging and gobbled up all the smaller companies, and we just have the major players left: at&t, Verizon, and etc. As consumers, we lose. Same thing happens when Microsoft and Sony own everything. We can't support smaller and cheaper companies anymore because they're all owned by the larger corporations.

False equivalency

It's not like Activision blizzard was selling video games for $40 or something - it's just a game studio - no one loses out financially if they are both under the same house

If Microsoft bought Sony I could see your point since they could raise the price of new AAAs to $100 and there would be no other option, but buying a game studio doesn't create a monopoly when so many others exist as well as other large companies like Sony

 

[Viri]

I mostly play on PC, so none of this impacts me. I don't really care about anything ABK owns. But this is just delaying the inevitable, MS is going to buy them.


Though the funniest ending would be it getting blocked, and Microsoft going full on spite mode against Sony for getting their deal blocked. Just money hating games to skip Sony consoles.

 

[Jayro]

He's literally me:

 

[KuroTheBang]

Because they operate outside of the US they need approval from various governing bodies in the other countries they operate in. If they operated exclusively in the US they wouldn't need approval from anyone else. So potentially any country can put a stop to the merger. It just happens to be the UK that decided to stop it.

Can they just say we merge in any other country and for UK they remain "two different" companies?

 

[Kioku]

False equivalency

It's not like Activision blizzard was selling video games for $40 or something - it's just a game studio - no one loses out financially if they are both under the same house

If Microsoft bought Sony I could see your point since they could raise the price of new AAAs to $100 and there would be no other option, but buying a game studio doesn't create a monopoly when so many others exist as well as other large companies like Sony

This makes more sense than whatever was running through my head before…

 

[Marc_LFD]

A U.K. company is blocking two American companies from merging? Last I checked America kicked Britain's ass.

 

[Muskusrat]

forgot the aoute …

Post automatically merged: Apr 28, 2023

Interesting, what were the companies? Link?

After a 30 seconds search on the internet I found an example. Seems like you need everything placed on a platter, but here is the link https://www.freightwaves.com/news/u...container-suppliers-over-market-concentration. In this case it was a chinese and danish company that wanted to merge.

 

[lordofcombo]

Very funny,like their decision can impact a US company.Boby kotik and friends are already visualising the yachts theyre gonna buy.US is favorable to the buyout.The only losing side is Sony.

 

[Kunty]

Can they just say we merge in any other country and for UK they remain "two different" companies?

They could technically set up an external company to publish Activision games but it's bordering on unlawful acquisition so it's more trouble than it's worth. It's not very often as far as I'm aware that anyone challenges the decision of the CMA and I don't know of any cases where the decision was overturned but I could be wrong. Right now the deal is dead in the water and it's going to be a challenge to give it CPR.

 

[Marc_LFD]

Very funny,like their decision can impact a US company.Boby kotik and friends are already visualising the yachts theyre gonna buy.US is favorable to the buyout.The only losing side is Sony.

This is business. Microsoft does want to ever so more grab as many publishers and developers as they can, but they're not going to make it exclusive to Xbox/PC because they'd lose out on not profiting from other gaming systems on the market.

Nintendo has the advantage of relying on outdated tech because their IPs are why it's so lucrative and popular. If Mario and Zelda were on Xbox, PlayStation, and PC then no one would buy a crappy tablet.

 

[urbanman2004]

Fvck the CMA. Their BS cloud-gaming concern/excuse is a BS cop-out.

 

[Lumince]

Fvck the CMA. Their BS cloud-gaming concern/excuse is a BS cop-out.

Nah fuck Microsoft lol They ruin everything that they touch I hope they keep blocking this.

 

[subcon959]

Man, I'm struggling with this newer generation that seem to love Microsoft. Where are all the OGs who knew the real deal?

 

[VaiCorinthians]

Haters gonna hate

All world with ABK games on Game Pass..
UK with ABK games on PS store for £80
I'm fine with this