I think it’s unwise for the CMA fining Microsoft IF they try to move Activision out of the UK’s jurisdiction. This action would become a political problem, and I dont think the U.K. would want that headache especially when they are trying to get a trade deal with the U.S.(this issue would definitely be brought up during negotiations). But then again, who knows with this deal, its uncharted territory.
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The giphy issue isn’t really relevant in any way shape or form to the Microsoft ABK deal. Also, Meta just gave up fighting it as it wasn’t worth the money and resources to fight the cma over such a small deal that wasn’t consequential to them or Meta’s daily business. However, they could have chosen to fight it and probably won eventually.
Applying the same logic to this deal just doesn’t work as Microsoft had made it clear it is willing to fight to the bitter end over ABK and even potentially ignore the order and just accept the fine.
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That’s not the point. Giphy no trading in the U.K. still allowed the CMA to exert its powers. If their jurisdiction excluded Giphy as a non trading uk entity then meta wouldnt have bothered…
What it shows is that simply moving ABK out won’t magically resolve it and will still leave a messy and drawn out legal fight.
The better option is to agree something with the cma or win in the CAT.
As I mentioned early, this is not the same exact situation. The CMA claimed jurisdiction because Giphy could do future business there. ABK could be structured so they can not.
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I think you are missing the point.
The bigger issue is Meta allowed it to happen and didn’t fight back because it was not worth it. They didn’t make a stink about it. they didn’t draw a line in the sand. They didn’t come out with giphy and speak their minds on the issue.
As a business it was not financially worth the investment to fight. So they didn’t fight. In this case Microsoft is willing to fight and will question every decision and would take them to court over the legality of exerting power beyond the CMA’s market. They would legally question how much they could fine them.
As Giphy didn’t allow anything. Giphy agreed to be sold and was sold to Meta. CMA then continued their antics against meta and Meta itself re-sold Giphy to just was their hands of the issue and move on as it wasn’t worth fighting.
Microsoft has made it clear if they got to the stage Meta was in they wouldn’t re-sell ABK.
Meta choosing not to fight doesn’t mean the CMA was right or rightfully enforced their power. As meta never really re-challenged them.
Besides a part of the issue with Giphy was the digital advertsing market which did operate in the UK and serve ads to Uk consumers before it was shut down by Meta. Which was another issue with the CMA as it was removing the competition in the UK digital advertising market.
It was alot of things that don’t really work when you are saying “but giphy” in relation to the Microsoft/ABK deal.
Didn’t meta take it all the way through cat and to the court of appeal? Or am I misremembering?
they appealed it to cat and then following cat CMA had to review it again. The CMA “Reviewed” and said we weren’t wrong . Then Meta was just like fuck it and sold Giphy for pennies (50 million) instead of continuing a useless fight for years over something they bought for only 400 million.
As time is also a resource that costs money and sometimes it just isn’t worth it. As for the time and cost to continue fighting they could literally make their own and archive a bunch of gifs which are freely available.
Meta also shot themselves in the foot. CAT was not impressed Meta completely ignored the CMA’s existence.
Even during the appeal felt like a completely different vibe (from what I remember) particularly from CAT, they were essentially chastising Meta through the proceedings for not even attempting to work with regulators.
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since this isn’t a cma vs giphy thread.
Hopefully CMA and Microsoft and UK Government come together on some kind of arrangement. As with the CMA saying they don’t have any issues with the non-cloud gaming stuff.
If Cat rules saying CMA overreached on the cloud gaming component and either reverse the decision or rule that the CMA needs to look at the market in realistic views and take into account the market competitors who are actually for the deal. I can’t see how MS loses.
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Brad Smith in London
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Looks like he was the first speaker of the day, maybe he is meeting with the CMA this afternoon.
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Maybe it’s cultural difference, but I just couldn’t help thinking that the FTC fine against Xbox could be something more like a deal? You know, money wise…
“I’m in search of solutions,” Microsoft President Brad Smith told the techUK Tech Policy Leadership conference in London today.
“If regulators have concerns we want to address them. If there are problems, we want to solve them. If the UK wants to impose regulatory requirements that go beyond those in the EU, we want to find ways to fulfil them,” he stated. v
He declined to comment on any meeting with the British government following the CMA’s veto on the deal which Smith had previously warned would shake confidence in the UK as a destination for tech businesses.
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the ftc will not levy anything against MS
I think they were referring to the 20 million dollar fine that Microsoft just agreed to with the FTC that was announced yesterday but isn’t related to this acquisition.
Xbox wire posted something but there’s also this
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