It’s been weeks since the UK Competition and Markets Authority (CMA) banned Microsoft from buying Activision Blizzard for nearly $69 billion. This is due to concerns that Xbox’s merger with publisher Call of Duty and Diablo will change the future of the fast-growing cloud gaming market, resulting in less innovation and less choice for UK gamers in the coming years.
Now it turns out that British officials bar both companies from standard share purchases. No company may invest in another without written consent. The restriction also applies to subsidiaries. So Activision Blizzard can’t invest in Bethesda or Xbox Game Studios, and Microsoft can’t even buy part of Blizzard or King. This also applies to investment in development research.
Additional restrictions were applied to prevent “preemptive action”. In other words, the CMA wants to make sure Microsoft doesn’t try to buy Activision Blizzard despite the ban.
Source: Alexandre Lallement – UnsplashThe European Union is expected to approve the merger between Activision and Microsoft.
Neither party has yet released a statement in this regard. Microsoft previously said it would appeal the CMA’s decision. He also hired two very experienced lawyers. But the ice broke first. British Prime Minister Rishi Sunak backed the deal..
In campaign promises, Sunak claimed he would lead a pro-business government. However, according to Microsoft, the CMA decision is bad for the UK and shows that other companies should not invest here. Sunak does not want to allow this to happen and, together with the government, has published a new proposal for a strategic direction with the aim of minimizing the burden on business and supporting investment and economic growth.
He then stated on LinkedIn that they need an unobtrusive system of regulation in the UK. “They should let businesses do what they do best: create jobs and grow the economy.” he added.
Source :Indian TV
