Wednesday's announcement comes despite the CMA having recently narrowed the scope of its probe to cloud gaming, after recently concluding that Microsoft's deal would not damage competition in relation to console gaming. "The report's conclusions are a disservice to UK citizens, who face increasingly dire economic prospects." "We will work aggressively with Microsoft to reverse this on appeal," it said. The decision "rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom".Īctivision also slammed the regulator's verdict, arguing it showed Britain was "closed for business" for its industry, despite the UK government's insistence that it was a global hub for technology. In response, Microsoft's vice chair and president Brad Smith said it remained "fully committed to this acquisition and will appeal". "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," Coleman said. Martin Coleman, chair of the independent panel of experts conducting the CMA probe, said the transaction would hand Microsoft even more power over rivals. "Preventing the merger would effectively allow market forces to continue to operate and shape the development of cloud gaming without this regulatory intervention," it added in the statement. In addition, the CMA said Microsoft's proposed remedies over cloud gaming contained "significant shortcomings" and would require further regulatory oversight instead of allowing the market to decide and the industry to shape its own future.
"The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future." "The deal would reinforce Microsoft's advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch, and World of Warcraft," it said.
Microsoft is seeking to further tap into booming demand for cloud services that stream gameplay over a range of devices like mobile phones and tablets.īut it already accounts for between 60 percent and 70 percent of cloud gaming services, according to a CMA analysis. It's the price you pay to be a global player," she told AFP. "If Microsoft is in the UK market, it has to abide by the rules.
"If the competition appeal tribunal (in Britain) confirms the decision, it's Game Over for Microsoft," said Anne Witt, a professor of anti-trust law at EDHEC business school in France.
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