Microsoft has formed its plans to become stronger in the gaming industry. The move to take a big step by acquiring Activision Blizzard is undesirable by major competitors in the market, such as Sony, on the grounds that it is anti-competitive. The decision was made on the purchase, which was in a series of court proceedings.
UK blocks $68.7 billion Microsoft and Activision Blizzard deal
One of the most talked about topics in the gaming world of the past months is Microsoft’s Activision Blizzard. $68.7 billion announced that it would buy. After this move, while the game industry was shaken, companies such as Sony experienced great decreases in their shares. Even institutions such as the World Bank, which provides financial opportunities such as loans to countries in need, announced that they do not approve of such a big deal.
The Competition and Markets Authority concluded that the agreement would deal a major blow to competition, especially in the cloud gaming industry. The agency said the agreement would not benefit anyone other than the companies. Microsoft and Activision announced that they will appeal the decision.
The statement made by the head of the institution included the following statements:
Cloud gaming needs a free, competitive market to drive innovation and choice. This can best be achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job.
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What happened?
Microsoft’s announcement that it would buy Activision Blizzard for a record amount naturally aroused the interest of regulatory agencies. Audit institutions in Europe started an investigation on the grounds that the said purchase could lead to unfair competition in the sector.
The Federal Trade Commission is investigating the claims that Microsoft will not release the games developed by Activision Blizzard to other platforms, which have been discussed frequently in recent days, and examines how it could harm rival companies if such a situation occurs. The UK Competition and Markets Authority has now been the first to make a negative decision for this situation.