In response to the European Commision’s (“EC”) approval of the Microsoft and Activision-Blizzard purchase, the United Kingdom’s Competition and Markets Authority (“CMA”) has put out a Twitter thread explaining its decision to block the purchase in clearer terms. The CMA argues that all three major commisions from the United States, United Kingdom, and Europe are unanimous in that “this merger would harm competition in cloud gaming” and that this merger would “set the terms and conditions in this (cloud gaming) market for the next ten years.” The CMA believes that the merger would once again give too much power to Microsoft in the cloud market and once again the Authority “stands by its decision” in blocking the deal.
Have a gander at the sourced Twitter thread below.
Our response to the European Commission's announcement today on Microsoft/Activision ⬇
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— Competition & Markets Authority (@CMAgovUK) May 15, 2023
Why would they even come out with this statement? It sounds like they are feeling pressure. They are going to be the only regulator that blocks this deal and its going to make the UK look anti business.
There want to make it clear they are not changing their mind (unless forced to)
Or
They know they’ve messed up, all eyes on them, laughing stock and want to try posture/bluff to scare people off.
As I live in England I doubt the CMA will ever change its mind. Will the CAT or even the government step in and change matters I don’t know. What I do know is the CMA is completely incompetent. Remember their 1 year = 5 year error, fun times.
Yea one org should not have the power to stop a merger already approved by most of the world, no matter what happens here the CMA needs to be reigned in and a procedure built to either get around them or a more concise method of appeal
What is funny is that there are other regulatory bodies who have cleared the deal, it is not just the EC. Infact the CMA is the odd one out at the moment along with the FTC.
Turkey is probably iminent (though, they are really at the cross roads of Europe and the Middle East, idk which they technically fall into). Are there others in Europe that are reviewing that acquisition?
Don’t remember by name but in the thread there was talks about several European countries that are reviewing the deal, and have pushed back their dates as they waited for the EC/larger regulators. As they’re smaller regulatory bodies that generally doesn’t have the same resources.
The complaint about setting the terms and conditions in this (cloud gaming) market for the next ten years makes no sense as the remedies is a EC remedy. They don’t like at market distortion from remedies the same way that the CMA does.
In my opinion, this one is over and they know it. EC remedies removes Microsoft incentives to foreclose in the cloud gaming market completely.
FTC did not block it. They ask a judge to block it, that is quite different and why MS can close the deal without FTC approval. Of course, the judge can block, but this is not FTC decision. Everybody think FTC case is weak and that is why the deal is on CMA shoulders (and theoretically China).
