UK impedes Microsoft's $69-billion Activision deal over cloud gaming concerns.

UK blocks Microsoft’s $69-billion Activision deal

UK's British regulators have hindered Microsoft's USD 69 billion deal to purchase video game producer Activision Blizzard over stresses that it would smother rivalry in the cloud gaming market.

UK blocks Microsoft’s $69-billion Activision deal

The Opposition and Markets Authority said in its last report Wednesday that "the main powerful cure" to the critical loss of rivalry that the arrangement would result in "is to disallow the Consolidation."

UK blocks Microsoft’s $69-billion Activision deal

The Competition and Markets Authority said in an explanation Wednesday that it was concerned the arrangement would prompt "diminished development and less decision for UK gamers throughout the years to come."

UK blocks Microsoft’s $69-billion Activision deal

The British regulators said,” The acquisition would make Microsoft “even stronger” in cloud gaming, a market in which it already holds a 60%-70% share globally”.

UK blocks Microsoft’s $69-billion Activision deal

Activision Blizzard is one of the world’s biggest video game developers, producing games such as “Call of Duty,” “World of War craft,” “Diablo” and “Over watch.” Microsoft.

UK blocks Microsoft’s $69-billion Activision deal

The deal to consolidate the organizations has been met with developing resistance by antitrust controllers around the world. In December, the US Government Exchange Commission sued to impede the takeover over comparative rivalry concerns.

UK blocks Microsoft’s $69-billion Activision deal

TThe Competition and Markets Authority said,” Microsoft could seek to make Activision’s games exclusive to its own platforms and then increase the cost of a Game Pass subscription”.

UK blocks Microsoft’s $69-billion Activision deal

Activision Blizzard CEO Bobby Kotick said,” Microsoft, Activision plan to appeal the decision. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal,” in a statement”.

UK blocks Microsoft’s $69-billion Activision deal

“This decision appears to reflect a flawed understanding of the market and the way the relevant cloud technology actually works”, Microsoft President Brad Smith said.

UK blocks Microsoft’s $69-billion Activision deal

The UK cloud gaming market is expected to be worth up to £1 billion ($1.2 billion) by 2026, around 9% of the global market, according to the Competition and Markets Authority.

UK blocks Microsoft’s $69-billion Activision deal