Microsoft’s appeal against UK government’s block on Activision Blizzard acquisition to begin in July
Summertime sadness
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Microsoft’s appeal of a UK government watchdog’s decision to block its desired acquisition of ActivisionBlizzardhas been scheduled in court.
Judge Marcus Smith scheduled the hearings onMicrosoft’s controversial acquisition plansfor late July this year (via Video Games Chronicle).
The acquisition wasblocked back in Aprilby the UK’s Competition and Market Authority (CMA) on the grounds that it would allow Microsoft to build a cloud gaming monopoly.
Activision Blizzard spokesperson Joe Christinat weighed in in a statement given to TRG, claiming that “the CMA’s decision ignores the facts, the law, and all commercial reality. We’re looking forward to working with Microsoft to get this deeply flawed decision reversed.”
In its analysis of the video game industry, theCMA foundthat Microsoft’s purchase of Activision would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.”
In order to have appeal hearings scheduled in the first place, Microsoft filed anapplication for reviewof the CMA’s decision – a necessary step under UK law. The application contests the CMA’s findings on five separate grounds, but broadly boils down to arguing that the UK watchdog has overestimated Microsoft’s influence on the cloud market while underestimating the impact of Microsoft’s proposed “remedial action”
In addition to its ongoing legal struggles in the UK, Microsoft has also fallen under the scrutiny of the Federal Trade Commission (FTC) of the United States whichfiled a suitagainst the tech giant following concerns that its proposed acquisition would breach US anti-trust laws.
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That being said, theEU’s regulatory bodyalong withthe Chinese government, have both approved the merger, subject to certain caveats. Though neither decision is likely to directly affect the outcome of Microsoft’s UK appeal, it is possible that the caveats and concessions offered by Microsoft, especially in the case of the EU, might act as a model for new sets of safeguards that they might offer to the CMA by way of a concession.
An editor and freelance journalist, Cat Bussell has been writing about video games for more than four years and, frankly, she’s developed a taste for it. As seen on TechRadar, Technopedia, The Gamer, Wargamer, and SUPERJUMP, Cat’s reviews, features, and guides are lovingly curated for your reading pleasure.
A Cambridge graduate, recovering bartender, and Cloud Strife enjoyer, Cat’s foremost mission is to bring you the best coverage she can, whether that’s through helpful guides, even-handed reviews, or thought-provoking features. She’s interviewed indie darlings, triple-A greats, and legendary voice actors, all to help you get closer to the action. When she’s not writing, Cat can be found sticking her neck into a fresh RPG or running yet another Dungeons & Dragons game.
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