Microsoft Challenges UK Block On Activision Blizzard Takeover

On Wednesday, May 24, Microsoft filed an appeal against Britain’s ruling that barred its $69 billion acquisition of “Call of Duty” creator Activision Blizzard. 

What We Know So Far

The agreement was rejected in April by the Competition and Markets Authority (CMA), the antitrust watchdog in Britain, on the grounds that it may harm competition in the young cloud gaming sector. On Wednesday, the deadline for filing, Microsoft submitted its predicted appeal to the Competition Appeal Tribunal (CAT), which hears appeals against CMA decisions.

Both firms were outraged by the CMA’s unexpected decision to annul the largest-ever gaming agreement, and Microsoft said it had damaged British IT companies’ reputation in the country.

Earlier Approval

The EU’s competition regulators allowed the merger earlier this month after they agreed to Microsoft’s proposed remedies, which were mainly similar to those it put out in the UK.

Microsoft has also filed an appeal against the US Federal Trade Commission’s (FTC) decision to prohibit the transaction because it would stifle competition.

If the tribunal challenges the CMA’s decision, Microsoft will have another opportunity to close the transaction in the UK. However, if the decision stands, Microsoft might choose to maintain its autonomy from Activision Blizzard in the nation.

But if Microsoft loses its FTC appeal, it wouldn’t have the ability to do that. Simply said, the US is too significant in terms of total gaming income. Regardless of what Microsoft has planned for its gaming future, the Activision Blizzard merger is now in a challenging position.

As per Telecom reports, the CAT evaluates the CMA decision for its merits, so Microsoft cannot offer further remedies in the appeal.

Related Stories:

US to block Microsoft takeover of ‘Call of Duty’ maker Activision Blizzard NASA Confirms Launch Date for Its Massive Moon Rocket Tech Layoffs Surge: Google, Microsoft Among Companies Shedding Over 1,000 Jobs in January 2024 Google Cloud slams Microsoft for anti-competitive cloud practices in Europe Microsoft shuns support for Facebook and Google Hangouts chat from Outlook Microsoft’s $1B Annual Payout: Ballmer’s ‘Doing Nothing’ Deal Microsoft Fined $20 Million Over The Xbox Scandal Microsoft Stock Soars to All-Time High Amid Strong Rally