Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Explainer: What next for Microsoft's $69 billion Activision deal after UK ban?

Explainer: What next for Microsoft's $69 billion Activision deal after UK ban?

Britain's Competition and Markets Authority (CMA) on Wednesday blocked Microsoft's (MSFT.O) $69 billion acquisition of 'Call of Duty' maker Activision Blizzard (ATVI.O) over concerns it would hinder cloud gaming.

The ruling was a shock after the regulator had already resolved its concerns about the consoles market, a sector dominated by Sony's PlayStation and Microsoft's Xbox, which dwarfs cloud gaming.


IS THE DEAL DEAD?


Not necessarily. Microsoft said it remained fully committed and would appeal.

The regulator's decision reflected a flawed understanding of the market, it said.


HOW DOES THE APPEAL PROCESS WORK?


Microsoft can appeal to Britain's Competition Appeal Tribunal (CAT), an independent judicial body, which will only examine the CMA's decision-making process, not the merits of the merger.

Microsoft will not be able to offer new remedies at this stage, such as offering to keep Activision content off its Xbox Game Pass, a subscription service for Xbox users, in Britain, as some analysts suggest.

"The CAT will not engage with the merits of the CMA's decision or conduct a wholesale review of the parties' evidence," said Edward Lane, senior associate at law firm Harbottle & Lewis, where his particular focus is on creative industries, including film, TV, video games and music.


WHAT'S NEXT?


Microsoft must appeal by May 24 and a decision may take many months.

"The CAT aims to deal with 'straightforward' cases in under nine months – and Microsoft/Activision is anything but straightforward," Lane, said.


WHAT HAPPENS IF MICROSOFT WINS?


The Tribunal will return the case to the regulator for further review. Microsoft can then offer new concessions.

"The likelihood is that without a material change in circumstances or new evidence, the CMA is most likely to reach the same conclusion as it did first time around," said James Groves, a competition associate at European law firm Fieldfisher.


WHAT ABOUT OTHER REGULATORS?


European regulators will rule on the world's biggest gaming deal by May 22. The U.S. Federal Trade Commission filed a complaint to block the deal, which Microsoft has indicated it will fight.

If either of those blocks the deal, it could be game over, Lane said.

If the EU goes against it, Microsoft would be fighting an increasingly uphill battle and could decide to cut its losses, even if that would mean paying Activision a hefty $3 billion break fee.


WHAT HAS HAPPENED TO OTHER CMA APPEALS?


Facebook-owner Meta (META.O) appealed a 2021 decision by the CMA to block its acquisition of Giphy, seen as a test case for the British regulator's resolve to take on "Big Tech".

Meta succeeded on a single procedural ground, with the decision otherwise upheld. The CMA considered new submissions, but it came to the same view and Meta had to sell animated images platform Giphy.

Global financial services company FNZ appealed a block on its 2019 merger with rival GBST. The regulator then "identified certain potential errors" in its investigation chaired by Martin Coleman, who also oversaw the Microsoft-Activision case.

The CAT sent the case back to be reconsidered, and the CMA agreed to accept a new remedy whereby FNZ could sell GBST and then buy parts of it back.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Portuguese Right-Wing Leader Collapses During Campaign Rally
A Pakistani imam in Italy gave a sermon stating that every Muslim should fight the infidels or face ‘catastrophic consequences’.
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
CIA Files Reveal Klaus Barbie's Role in Bolivian Drug Trade and Dictatorship Support
Daughter of crypto boss escapes Paris kidnap in latest in series of attacks
U.S. FDA to Remove Oral Fluoride Supplements for Children Amid Gut Health Concerns
Kim Kardashian Testifies in Paris Robbery Trial, Tells Gang Leader: 'I Forgive You'
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Flip flop: UK Introduces New Immigration Policy to Reduce Net Migration
Poland Tightens Immigration Policy with New Plan to Suspend Asylum Law
Trump says it would be 'stupid' not to accept gift of Qatari plane
8-Year-Old Orders 70,000 Lollipops Using Mother’s Phone, Prompting $4,200 Amazon Bill and Viral Facebook Plea
Quantum Computing Threatens Bitcoin Security
American citizens account for 70% of worldwide pharmaceutical sales despite comprising only 4% of global population
Michael Jordan to Serve as Analyst for NBA Games
New Details Emerge on Syrian Attacker's Motives in German Festival Stabbing
US and China Agree to Reduce Tariffs by 115% in Bilateral Trade Deal
Zelenskyy Seeks Ceasefire as Putin Proposes Direct Talks in Turkiye
Arsenal Stages Comeback to Draw 2-2 Against Liverpool in Premier League Clash
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Historic Papal Conclave Set to Commence in Rome
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
EU Hits TikTok with €530 Million Fine Over China Data Transfers
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
Warren Buffett to Step Down as Berkshire CEO After Nearly 60 Years
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
U.S. and Ukraine Poised to Sign Strategic Critical Minerals Deal Amid Geopolitical Shifts
Spain Restores Power After Unprecedented Nationwide Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
×