UK Imposes Stricter Regulations on Microsoft and Activision Merger: Impact and Implications.
Competition and Markets Authority (CMA) Places Restrictions on Microsoft and Activision Blizzard's Acquisition Plans
UK Regulator Requires Prior Written Consent for Acquisitions between Microsoft and Activision Blizzard.
The order encompasses both the parent companies and their respective subsidiaries.
The decision comes two weeks after the regulatory authority blocked Microsoft's attempted $68.7 billion (£54.8 billion) acquisition of Activision Blizzard. The proposed takeover would have granted Microsoft ownership of popular gaming titles like Call of Duty, over watch, and World of Warcraft.
The regulator expressed concerns that the deal would stifle innovation and limit options for gamers in the rapidly growing cloud gaming industry. In response, both Microsoft and Activision expressed their disagreement with the decision and announced their intention to file an appeal. An official from Activision commented that the ruling indicated a lack of openness for business in the UK.
Key Information about Microsoft's Acquisition of Activision Blizzard
In the world of gaming, a major development has taken place as Microsoft announced its acquisition of Activision Blizzard. This deal has sparked significant interest and curiosity among gamers and industry enthusiasts. To keep you informed, here's what you need to know about this ground-breaking agreement.
Regulatory Approval and Prohibited Actions: What You Should Know about Microsoft's Activision Blizzard Deal
The highly anticipated acquisition of Activision Blizzard by Microsoft has encountered a regulatory hurdle, as approval from key regulatory bodies in the UK, United States, and European Union is required for the deal to proceed. Let's delve into the details of this significant development.
The Competition and Markets Authority (CMA) was the first regulatory body to issue a ruling in April, and the decision from the European Union is expected in May. In its interim order, the CMA emphasized the importance of preventing any pre-emptive actions by Microsoft or Activision Blizzard.
To ensure compliance, the order prohibits both companies, as well as their subsidiaries and any affiliated businesses, from acquiring any interests in each other. This restriction extends to subsidiaries such as King, known for their popular mobile game Candy Crush Saga, which Microsoft cannot invest in, and vice versa.
The order also includes a provision requiring immediate notification to the CMA if there is any suspicion of a breach. This ensures that the regulatory body can closely monitor the situation and take appropriate action if necessary.
When approached for comment, a Microsoft official expressed the company's unwavering commitment to the deal and its intention to present their case to the Competition Appeal Tribunal.
At this time, Activision Blizzard has yet to provide a response.
The journey towards finalizing this acquisition continues, and all eyes remain on the regulatory decisions and the subsequent actions of the companies involved.
