The UK Competition and Markets Authority (CMA) is throwing sticks under Microsoft’s feet. Officials do not seem to be going to give up quickly and may launch a new investigation into the acquisition of Activision Blizzard.
Yesterday Microsoft and Activision Blizzard won a key legal dispute with the US Federal Trade Commission. Immediately thereafter, the CMA asked for a stay of the proceedings in order to re-negotiate. The British office was opened to act, even a tacit agreement on a petty sale and purchase was supposed. At least that’s what CNBC correspondent David Faber said last night.
Source: erika8213 / envatoBritish politicians questioned CMA executives over lockdown on historic acquisition
As it turned out today negotiations between Microsoft, Activision Blizzard and CMA are at an early stage. Therefore, it is far from certain that the CMA’s concerns will be resolved quickly. Besides, everything could lead to a new merger investigation. This would greatly delay the whole matter. Microsoft must complete the acquisition no later than July 18 this year.. Then the terms agreed with Activision Blizzard will no longer apply.
“The parties cannot submit new remedies after the release of the final report, but they can restructure the deal, which could lead to a new merger investigation. Microsoft and Activision have said they are considering changing the deal, and the CMA is willing to work with them on that basis. These negotiations are still at an early stage and the nature and timing of further steps will be determined in due course. While both parties have asked for a stay of Microsoft’s appeal to allow these discussions to take place, the CMA’s decision, as set out in the final report, remains in effect.” CMA media relations spokesman Billy Proudlock clarified the current situation for The Verge.
There is a growing opinion that Microsoft will buy Activision Blizzard even without the approval of the British regulator. Microsoft representatives have previously warned that they may leave the UK. Otherwise, Microsoft will have to pay Activision Blizzard a $3 billion fine. If he then wanted to buy the publisher of Call of Duty, both parties would have to negotiate terms (especially price).
Source: Government of the United KingdomBritish prime minister sided with Microsoft and Activision
CMA concerned about impact on emerging cloud gaming market. According to the original report, Microsoft has failed to effectively address the challenges in the cloud gaming industry. Here is the message:
“Microsoft already accounts for approximately 60-70% of global cloud gaming services and has other significant advantages in cloud gaming through its ownership of the Xbox console, the leading PC operating system (Windows) and global cloud infrastructure (Azure and Xbox Cloud Gaming). )”.
“This acquisition will solidify Microsoft’s market leadership by gaining control of important gaming content such as Call of Duty, Overwatch and World of Warcraft. The data available to the CMA suggests that without the merger, Activision would have begun delivering games through the cloud for the foreseeable future.”
“The cloud allows UK gamers to avoid buying expensive game consoles and PCs and gives them a lot more flexibility and choice in how they play. Allowing Microsoft to have such a strong position in the cloud gaming market at a time when it is booming could undermine the innovation that is critical to the development of these capabilities.”
The position of the Federal Trade Commission (FTC) remains in question. According to Bloomberg sources, tend to appeal. They say it can be served today.
Source :Indian TV
