The proposed acquisition of Activision Blizzard by Microsoft, which is considered the largest merger in consumer technology in decades, is facing opposition from the UK’s competition authority CMA due to concerns that it would impact the fast-growing cloud gaming market. The CMA argues that Microsoft’s solution has significant shortcomings and would require regulatory oversight. Microsoft’s president, Brad Smith, expressed disappointment with the decision and stated that it is bad for Britain and sends a message that the European Union is a more attractive place to start a business.
The gaming market is rapidly growing, and cloud streaming is expected to become the leading platform by 2025. The US competition authority, Federal Trade Commission (FTC), is also contesting Microsoft’s acquisition of Activision Blizzard, citing concerns that Microsoft could harm competition by making Activision games available only on Xbox consoles. Microsoft argues that the deal would expand competition. Despite discussions about regulating big tech companies, the FTC’s decision has received criticism for being politically motivated. Microsoft has proposed concessions to the FTC and remains confident in its case to acquire Activision Blizzard.