After the European Union approved the planned purchase Activision Blizzard from the side Microsoft authorities of other countries, namely China and South Korea. The US Federal Trade Commission (FTC) is trying to block the acquisition, but it will have to take the case to federal court, which is currently unlikely. The biggest hurdle for Microsoft is the UK Competition Authority (CMA)which decided to block the deal at the end of April.
Microsoft has filed an appeal against this decision, and if the CMA does not reconsider its decision, the situation will be considered from July 24 until Court of Competition Appeals (CAT). But there is another option. The first deadline to close the deal is as early as July 18, and missing it would mean additional financial obligations to Activision Blizzard for Microsoft. Thus, the company was able to close the deal that day, despite the reluctance of the authorities.
In practice, this would mean the need termination of Activision Blizzard’s video game operations from the UK market. UK buyers won’t lose popular games, but the distributor will have to sell them here, hurting Microsoft financially.
Alternatively, Microsoft could close the acquisition and then challenge the CMA’s procedures in court. According to Bloomberg, he is considering all of these options.
Next week Microsoft President Brad Smith meet in the UK with representatives SMAbut also, for example, Chancellor of the Exchequer Jeremy Hunt, which is one of the most vocal critics of regulators. The acquisition will jeopardize the burgeoning cloud gaming market, they said.
Source :Indian TV
