The seemingly endless saga of the Microsoft-Activision buyout continues, with a new update from the United Kingdom. The country's Competition and Markets Authority (CMA) has prevented Microsoft's acquisition of Activision Blizzard, over concerns of the buyout resulting in competition problems. While the CMA did side with Microsoft last month, that was on the grounds of competition in console gaming--this time around, the decision was made after considering the cloud gaming market, which it believed the merger would "damage competition [...] leading to less innovation and choice" by having all of Activision's library available on Xbox Game Pass.

The CMA carefully considered whether the benefit of having Activision’s content available on Game Pass outweighed the harm that the merger would cause to competition in cloud gaming in the UK. The CMA found that this new payment option, while beneficial to some customers, would not outweigh the overall harm to competition (and, ultimately, UK gamers) arising from this merger, particularly given the incentive for Microsoft to increase the cost of a Game Pass subscription post-merger to reflect the addition of Activision’s valuable games.

Directly following the CMA's decision, stocks of Activision Blizzard fell as much as 8%. Microsoft stated that they would be appealing the decision, however, the deal would still need to be passed by similar regulators in the US and EU, which it is currently struggling to do so, regardless of the decision made by the UK, though it has been initially approved by Japan, Brazil, and South Africa. Should acquisition be impossible, or talks break down completely, Microsoft will owe Activision a whopping $3 billion, as a result of having to terminate the merger contract.

Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors.

Microsoft engaged constructively with us to try to address these issues and we are grateful for that, but their proposals were not effective to remedy our concerns and would have replaced competition with ineffective regulation in a new and dynamic market.

Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job.

Source

 

[Lopakin]

Anyone knows when can download the client of battle net of the game? I paid for 4 days early access

 

[danny19901]

Nah fuck Microsoft lol They ruin everything that they touch I hope they keep blocking this.

I honestly hope Xbox never acquires Activision and fully agree with what your saying and yes there will be haters are all to far up Xbox to even know what's really happening it's a spiteful move I mean think about it.

Rare use to be mostly for Nintendo Xbox acquired them.

Bethesda PS5 gets exclusive games and suddenly Xbox Acquires them.

Activision PlayStation have had so many deals and exclusivity and other stuff with them and suddenly Xbox wants them.

The Bethesda deal Xbox said they wouldn't be used for exclusives and suddenly Redfall and Starfield are Xbox Exclusive.

It's just a BS excuse to try and kill competition the whole xcast of Phil Spencer spending to much time on talk shows and stuff rather than focusing on bigger important things Xbox is ran by clowns after Xbox 360 and Xbox will always continue to shady stuff to steal data from users and sell the data on for adverts and more.

Sent from my 2201122G using Tapatalk

 

[Kioku]

Man, I'm struggling with this newer generation that seem to love Microsoft. Where are all the OGs who knew the real deal?

Playing their OG system and refusing to accept the modern day bullshit.

Me, I’m playing the OG system and refusing to accept the modern day bullshit.

 

[urbanman2004]

EU Official Says CMA Overstated Microsoft's Share in Cloud Gaming Market

 

[Kunty]

EU Official Says CMA Overstated Microsoft's Share in Cloud Gaming Market

The EU will jump at any opportunity to bash anything from the UK. They didn't like us when we were in the EU so they really don't like us now that we've left.