The Strategist

UK blocks Microsoft-Activision Blizzard deal

04/27/2023 - 07:16

According to a statement posted on the UK government website, the UK Competition and Markets Authority decided to prohibit Microsoft from purchasing Activision Blizzard, one of the most well-known video game producers.

The announcement stated that the proposed acquisition of Activision by Microsoft had been rejected by the UK Competition and Markets Authority.

The agency's decision was motivated by worries that the agreement might have an impact on the future of the rapidly expanding cloud gaming market because it would significantly increase Microsoft's control over the still-emerging gaming industry, hindering innovation and availability of games without the need to purchase expensive consoles and computers.

The authority sent its reservations to Microsoft back in February so that the company could work on the agreement, but the report stated that "Microsoft's proposed solution does not sufficiently address concerns in the cloud gaming sector."