I don’t understand the basis of the desire to regulate the tech industry more in terms of mergers scrutiny. The tech industry globally is dynamic and diverse. Why try to fix what’s not broken.
Acquisition is a exit strategy that entices entries and startup. Vertical mergers can spur competition. Why mess with all of this unduly.
It really is confusing why the focus is on tech, which hasnt really harmed peoples lives as much as issues in housing, food, utilities, insurance, banking, etc. Dont get me wrong, tech has issues that should be solved through legislation (data security, data privacy, algorithm targetting, etc).
I think its just the size of tech makes governments scared of losing their power and control.
It is because in real jungles, the big is big and the small stays small. In economic jungles, there is an aspiration of the small to become big and the regulators should allow the market to allow that.
The distorsion with Tech is the small are startups whose aspiration is to be eaten by big tech, because the price for growing to scale is too big for startups.
I think it’s because of the fear of power that big tech companies potentially hold. I think there are things that need looking at. Big tech companies should be responsible for their products including social media and deal with the issues that brings, they shouldn’t be allowed to hold more power than democratic governments and they should be regulated in a responsible way.
The problem is the mindset people have applies universally rather than looking at individual cases. Microsoft buying a games publisher is a positive and doesn’t create any of those fears I mentioned above. Microsoft cornering the AI market is more concerning for the reasons above.
I know they not gone to pull out. Even if they do, why do i keep seeing people saying they have to pull out everything? all their business.
I get it and honestly, I’m an outsider looking at things, so I see your perspective. I do still believe this deal will close and I so I would hope the UK will come around.
Looking at it now perhaps the CMA was okay under the EU but with BREXIT now will have to change and that will start with an oversight like all the rest have. They cannot handle global matters in this way and this appeal will have to show that.
So, July is the next meaningful update for this? Since that’s when Microsoft and ABK will have to renegotiate the deal? Don’t think it will be worth it for Microsoft IMO, just far too much uncertainty and it would be a huge waste of time and money if this goes all the way to late 2024 or even early 2025 and the CMA blocks again, Xbox has suffered the most from this and that’s what freaking sucks, in all that wasted time they could’ve gotten something else but instead got nothing, maybe a smaller publisher or studios like Crystal Dynamics which was available, in the meantime PlayStation only got bigger in the US, a market Xbox can’t allow itself to lose relevance in🤦🏼♂️
What a goddamn mess this ABK crap turned into in the end.
That is how it works, if Microsoft doesn’t obey their regulatory decisions then they have to pull out of the country or pay like 20% of their yearly revenue or profits in fines to the UK, and I’m not sure about the latter, not sure if they’d even be able to stay while paying fines.
Nobody sees anything wrong with that. If i pull my gaming business from your country, i have to also pull Window, Azure, Office? Like how does that make an sense? The overreach of power that this government have is unbelievable.
They seem to think that the UK will be left behind
I’ve mentioned this before to deaf ears, but if the CMA actually fined a company 20% of yearly total revenue, then they have slammed the door shut on a lot more than just big tech doing business on the UK. No companies going to stay in a place where a regulator has free reign, no oversight, and hits you with penalties like that. Closed for business would be stapeled on the UK on google maps.
Thank you for posting this. “Billy no mates” also gave me a chuckle.
Satya Nadella, on if he will carve out the UK: “let’s see what happens first smile”
Financial analysts and lawyers: “We think they might carve out the UK if everyone else approves”
Idas, OP of the MS/ABK OT over on OtherEra: “Ringfencing might be a viable route that MS takes”
…
To play devil’s advocate, the whole thing is uncharted waters and can be confusing. The only thing I know for sure is to ignore people who talk in absolutes or feign authority about the subject (on here and elsewhere frankly) because it is absolutely unprecedented.
Well they certainly hired the best lawyers to navigate these uncharted waters. I’m confident that they have multiple plausible scenarios to proceed.
Im pessimistic about the deal happening but people do need to stop talking in absolutes
Using past cases is somewhat pointless considering so many aspects of this deal and new ground
I have a feeling if MS decided to go all the way is because they know it’ll close no matter what the CMA says. My guess is that ring fencing is plan B and ready to go at a moment’s notice, but they still have hope for Plan A to go through if they play their cards right. So before they go with Plan B they’ll exhaust all their options.
I believe the deal will close this year. The Meta Giphy I think took less than 6 months. Also, Bobby Kotick said there are means for speedy appeals. The CMA first got emboldened when they blocked the Meta Giphy acquisition and moved forward to Microsoft what do you think they would do next? Also do you think Microsoft will go for the fine when they don’t make anything close to that in the UK. This is a turning point for big tech, so the idea of Microsoft abandoning is off the table. They have to deal a decisive blow to the CMA to ensure this rogue regulatory practice is never again attempted.
I think many are just looking at the developing stories around the CMA which have been quite a lot. I believe the deal will close this year. Microsoft is a business not some national entity, they are driven by the business therefore I think they will do what makes business sense. The CMA like someone said I think is far too inexperienced for the world’s stage. They seem to lack the budget and qualified personnel for the task.
will they really pull out of the UK? Couldnt playstations players still play cod just over x cloud?