British Regulator CMA Reacts to EU Clearing Microsoft's Activision Blizzard Acquisition

British Antitrust regulator CMA (Competition and Markets Authority) has issued a response to the decision by the European Union to clear Microsoft's acquisition of Activision Blizzard.

[XiNatsuDragnel]

Understandable approach imo

[Abracadabra]

British are too stubborn. Unlikely CMA will change their mind.

[SmortBoie]

Hey! I.. we.. You can't...
...

Yes.

[343_Guilty_Spark]

Screw em. UK gamers will be the ones that suffer from the CMAs idiocy

[BehindTheRows]

@343_Guilty_Spark

And how, pray tell, will they suffer?

[Profchaos]

@343 doesn't the deal require a complete approval across the board if one fails it all falls

[darkrider]

Not stubborn. Just aren't in the pocket of a trillion company that wants monopoly but can't even manage 23 studios....

[GamerRN]

They don't need approval across the board. They can just exclude the UK or create a company that operates independently that handles Activision and another for Microsoft in the UK. Activision UK and Microsoft UK.

Then the deal is done. Problem solved.

[Redemption-64]

@Moonwalker00

That is actually a lie. Not only was the CMA giving more power, they will followed by making sure Microsoft/Activision cannot merge in the UK for the next 10 years, followed by not allowing both companies to buy shares in each other, I believe without CMA approval. Is this what you and your ilk call scrutiny?

[KillBill]

@Profchaos

No. That portion of the contract simply allows more so Microsoft leeway in the process. ABK doesn't really have a valued interest in disallowment of deal based on that contract point.

@Redemption-64

Not correct. They simply added terms applying during appeal process. As is MS/ABK could go through with deal and the most CMA could do is lay fines. Of which UK can judicially overturn said fines. Currently appeal process at most hands it back to CMA to reaccess if anything.

[DarXyde]

344_Guilty_Spark,

Explain. Please. How on earth are UK Gamers going to "suffer"?

What changes for them? You're just saying nonsense because you want the deal to go through and there's zero substance behind that statement. Make your case instead of saying stupid, cryptic things.

You know who does suffer? Gamers, because the corporation with the worst studio management capabilities would be in control of one of the biggest publishers. Society and the justice system, because the execs would be exonerated of all wrongdoing going on prior to the bid.

The only ones who "win" in this scenario are Game Pass humpers who don't buy games and a bunch of rich assholes.

[MontyeKristo]

Darkrider - if they can't even manage 23 studios, then where's the harm if the deal were to go through?

[DarXyde]

MontyeKristo,

I assume you mean me (my username is not darkrider).

What is the harm? Personally, I don't care if ABK as a corporation gets run into the ground. I'm not even saying their current leadership is good. You would struggle to find someone who despises ABK more than me. I haven't given them a penny in nearly 2 decades. That all said the harm I foresee is continued industry consolidation and further perpetuation of a subscription model, both things I am strongly against. Take that with poor management and I think that puts us in a situation where half-assing games is tolerated because "at least it's on Game Pass". Games are already broken, I feel pretty sure this will make it much worse because it will normalize people being okay with it.

More of an issue for me personally is how this acquisition offers a golden parachute to truly reprehensible people, as well as what is certain to result in massive labor force reduction. I find Microsoft's laser focus on prominent IP acquisition over talent to be gross. I'm sure they don't care about the talent behind Call of Duty; they just want Call of Duty.

Those are issues I would anticipate. I don't think any of that is healthy for the industry we all enjoy so much. I'm against it as a matter of principle on many levels, but not because "it would hurt PlayStation". I don't really care about that and Sony will be fine if they don't have Call of Duty. It's all the other stuff, especially the execs slithering away without facing justice—I should add, of Microsoft guaranteed Kottick and the rest of the ABK rogue's gallery faced justice, I would support this deal, all of the other stuff be damned. There needs to be a message sent that no one is above judgment and it's maddening to think that people are okay with that being allowed to happen if they can play their video games at a lower cost up front.

You can disagree with my reasoning, and that's fine. But you asked for my thoughts, and here they are. Cheers.

[Redemption-64]

@KillBill

A new UK law literally gave them more power

https://www.skadden.com/ins...

[Battlestar23]

Can't believable that the CMA is still acting childish the way they are. MS is an American company no other country can tell am American company what mergers they can or can't do in other countries. The UK needs MS more than MS needs the UK. Hopefully with Phil Spencer meeting the British PM next week he lets the PM know that the UK can't treat an American company like this.

[gold_drake]

everything you say sounds like propaganda, whats up with that haha.

[bloop]

Ladies and gentlemen, allow me to introduce N4G's very first Karen......... Battlestar23!!

[SICKINDIVIDUAL]

Aka Orchard lmaoooooo 🤣😂🤣

[Hofstaderman]

Why is he allowed to have so many accounts? The style of the posts are all the same and the semantics and grammar used.

[Chevalier]

Right? I'm not understanding why so many people want this sale to go through. Regardless of whether it's owned by MS or not doesn't change the fact the people would still get the games. Outside of Gamepass possibly saving the odd person a little. But considering most people would play the game for a long time it may be cheaper to just buy the odd game outright

[FinalFantasyFanatic]

@Hofstaderman,
N4G should really start dropping the ban hammer or marking these accounts so the owner is obvious somehow (I'm sure he's not the only person here with multiple accounts).

[senorfartcushion]

Lmao alright then.

Did you know that entire countries have to employ accountancy firms to handle their monetary affairs?

[lodossrage]

@Battlestar23

Oh please, that sounds like Nationalist dribble.

Since the FTC is fighting to block it just like the CMA, Is Spencer going to meet with the president and let him know "America can't treat an American company like this"??

On a side note, does anyone notice how the FTC and CMA are meant to act independently UNTIL they rule in a way big business doesn't like? Then all of a sudden lobbyists come out, crying to prime ministers, threats, and campaign donations kick in.

[LoveSpuds]

The arrogance of Americans blows my mind sometimes....."..can' t treat an American company like this", do you know how much of a plonker you sound right now?

[lodossrage]

It's not all of us bro lol. But I understand your point.

[SonyStyled]

I like to think it’s mostly teenagers behaving like that. The older you are, the more you’ve seen, the more you’ve been through, the more experience you have for better judgements

[shinoff2183]

Lovespuds

Please don't lump us all into that. Not all Americans are like this. Unfortunately since about 2016 there's been more and more of these types coming out

[LoveSpuds]

Yeah, apologies that I made something of a sweeping statement. I realise there are plenty of Americans who are more self aware.

Unfortunately, we have a very similar issue in the UK where a good chunk of the population believe in UK exceptionalism.

[darkrider]

It's sad. They think money can bend the knee of everybody...

[Mr_cheese]

Merger aside, you've got a real issue Battlestar. The ignorance you're spilling onto N4G is outstanding.

[Vengeance1138]

Your post is the definition of entitlement. You are definitely 'murican with that attitude. Also many many countries CAN definitely tell any American company, especially Microsoft exactly what they can and cannot do. MS is not above the law as you may think.

[Christopher]

***MS is an American company no other country can tell am American company what mergers they can or can't do in other countries.***

Someone really needs to look up how global economics and multinational companies work.

***The UK needs MS more than MS needs the UK.***

This is called a toxic relationship and takes power away from UK by not building UK-based businesses that can go international and instead continue to support the UK economy and their growth as a nation rather than the growth of an American business.

[sinspirit]

A lot of commenters on this site don't seem to care at all about the treatment and lack of care for consumers just to save a buck upfront.. This acquisition like I said from the beginning I didn't see getting through. Glad some like yourself have common sense and dignity. Hate how my favorite hobby is so littered with money hungry approaches and being worried about being the best up front monetary deal versus the most bang for your buck quality provider.

[-Foxtrot]

This sounds like a Microsoft fanboy who’s a fanboy purely because MS / Xbox is American and it’s some form of patriotism

[MontyeKristo]

Not that I disagree; but, does this stuff not also happen in Japan? Buying Sony and Ninty just because they are Japanese brands, rather than an Xbox because it's an American brand?

[shinoff2183]

Battlestar23

All I'll say is you should brush up on the way the world works. Just cause a company is American doesn't mean it can do wtf it wants.

[S2Killinit]

@Battlestar23
You are insane. You are embarrassing the rest of us Americans with comments like that. Like really.

[Petebloodyonion]

Regulations organism are in place to ensure what's best for the consumers of their area and ensure the best possible practices.
Now are they all experts? of course not it's been proven with EU using a Mario Bros pic depicting an MS video game
but having multiple regulators from different countries is the best option we currently have to sets the rule for everyone.
Now having the CMA responding to the EU is a clear indication that they are under pressure of making sure they still believe it's the best course of action.

I strongly believe that the FTC decision will have the final says regarding if the CMA will cave in or not but MS is an American company should have no factor in the final says.

[Hofstaderman]

If it’s dead in the UK it’s dead. Nothing will change that. MS needs CMA approval.

[S2Killinit]

@Hofstaderman
Not sure if that is true or not. MS may simply give more and more concessions just to get it passed even if it is only to save face.

[Petebloodyonion]

@hofstaderman
CMA Regulators are speaking for the UK meaning that it's for business practice inside the UK so MS could still go ahead completely but would need to stop doing business in the UK (not gonna happen).

Also, MS could create a shell company not managed by MS that manages Activision assets in the UK with strict sets of rules. (Again something that MS doesn't want).

Last but not least, the CMA has been explaining more and more what they are against meaning that they are probably willing to evaluate their position if MS addresses these concerns.

[tay8701]

@S2killinit the only way they can submit more concessions is if they win the appeal. At this stage they can't offer any more remedies to get the deal across the line. If by some miracle they do win the appeal, then they can submit behavior or structural remedies to the CMA. Then the CMA would rule on it again.

[Profchaos]

Merica f yeah going to save the mf day now.

Jk but they operate in the UK so they need to abide by UK law same as when they operate in Australia or Japan for example

[seanpitt23]

Haha have you heard yourself! you would think your the one who's getting the $200m bonus like joker kotick.

[DarkZane]

You sound self entitled and selfish, I wouldn't want to be in the same room as you.

[Ashunderfire86]

Dang you are branded as a Karen congratulations! SCREAM LOUDER!!!

[XiNatsuDragnel]

You're a professional loser Man.

[darkrider]

Treat? Dude, that's what Microsoft did immediately. Big mistake.

[Huey_My_D_Long]

My guy pick better arguments if you want to convince people. Honestly its almost as if you want to dissuade people. Like almost that you dont want the deal to go through and to persuade as many people as you can, you pretend to want the deal but making the dumbest arguments on purpose.

Sad thing is, this your actual attempt to convince people. My guy, you gotta get healthier hobbies.

[RedDevils]

Battlestar23 what at fucken loser.

[jznrpg]

There are good American companies and there are bad ones.

MS is crap for gaming and they deserve to be treated this way.

[Workshyskiver]

Wah wah wah wah wah

[TheKingKratos]

Well, don't cry..... maybe one day Microsoft will actually try to make games for you

[S2Killinit]

And by make games, we mean the same games you are getting right now, except now MS will deprive others. Yaay

[Hofstaderman]

Zing

[Workshyskiver]

Enjoyed more games on my Xbox this gen than on my PS5, I'm more of an AA type of gamer anyway.

[babadivad]

Maybe

[S2Killinit]

@Mcardle
That is strange considering PS5 has more of those as well.

[darthv72]

I just want this all to end so MS can get their own teams back on track to releasing all the games they announced over the last several years. I want more info on Perfect Dark, Hellbalde 2, Fable... NONE of which are related to the ABK situation. Im just tired of this dominating the news feeds. The sooner this is over the better.

[Sonic1881]

This probably will go on for the next few years

[outsider1624]

You and me both. Whatever the outcome..jesus..End it.

[SeTTriP]

Exactly totk has a 96 metacritic this should have gaming news dominance right now.

[shinoff2183]

I'm tired of hearing of Zelda already. It's been allover just as much as this the last week or so

[rippermcrip]

So this purchase is the reason they haven't released squat for 2 generations?

[Cacolaco]

It’s no wonder they’ve been having such a hard time pushing this through if they had the development teams handling the legal stuff. It would REALLY explain their situation on the exclusives, however, if they’ve been letting the lawyers develop the games…

[MaximusPrime_]

Good on CMA

[Tacoboto]

CMA being against the deal harms cloud gaming far more than helps it.
Microsoft is being legally compelled and is seeming to be more than willing to host its games and COD especially on a variety of cloud services. No merger - no legal reason to honor these deals contingent upon the deal being approved.

The free market already decided that a trillion dollar juggernaut like Google can't make it in cloud gaming, Microsoft is losing sales and not hitting their membership targets, yet the CMA thinks the government needs to shape it as if it's the only way people are playing games. Their decision and its basis misreads the entire video game industry.

Blocking the deal because of COD would have been understandable at least. Blocking the deal because of cloud is a middle finger to every cloud provider Microsoft gave a 10 year COD/Xbox deal to.

[shinoff2183]

Not everyone is excited for cloud as some. Personally I think the cloud blows and would still prefer not to stream games. Ms is trying to usher in something horrible imo. Most of the world probably isn't even ready for the cloud also. Internet isn't that great everywhere plus alot of countries have a internet usage cap.

[SeTTriP]

I hear you but I love the celebration of games, let the suits do what the suits do.i wish MS was in this league then I'd have 3 consoles to celebrate instead of 2.

[343_Guilty_Spark]

The fact you said Cloud blows and so few use it is even more of an indictment on how poor and irrational the CMA decision is.

[Profchaos]

That 10 year deal was tainted Microsoft retained 100 percent of the profit

[Huey_My_D_Long]

Yeah, that 10 year deal dont look so good when you find out MS said they will take %100 of in game Purchases...kinda seems like those specific terms is really good for MS, unheard of for anyone else.
Idk for sure if sony got the same deal, but if they did, I certainly understood sony being like F that noise

[Aloymetal]

Don't worry, I've heard Phil and his briefca$e are visiting the UK next week to make the CMA recon$$$ider its previou$ verdict...

[SeTTriP]

I said this in the beginning thumbs down to oblivion.

MS is a 2trillion company more then most countries gpd's, they can make alot of dreams come true (if you get what I'm saying?)..if sky is the limit then MS are gods.i thought they would start with this, the reason I thought it was guaranteed.

[Aloymetal]

100%!

[Ryuk_2007]

Why is the CMA lashing out at EU because they didn't come to the same conclusion as them? Seems pretty unprofessional if you ask me. You regulate your country and let them do theirs.

[Eonjay]

You are lying.

They literally said in their response that they respect the EU even though it came to different conclusions.

[343_Guilty_Spark]

They announced it on Twitter and their twitter feed is loaded with Brits that say it’s a poor decision to block the deal

[SoulWarrior]

They aren't 'lashing out' they are stating their view and doubling down, they even said they said respect the EU decision even if the disagree. Lashing out is what Brad, Kotick, Lulu and co did when the CMA moved to block it a few weeks ago.

[S2Killinit]

Good for CMA. Please, don’t give in to MS lobbyists. These suits will ruin console gaming.

[Petebloodyonion]

Having the CMA justify its position today on Twitter regarding the EU decisions is proof that they are under pressure from lots of outside sources. Do you recall the CMA responding to Ukraine's decisions?
So why the need to do it now?

I believe that the FTC situation and conclusions will probably dictate how this will end and I strongly believe that the FTC will put pressure on MS so they are not seen as protecting an American company.
In the end, if the FTC goes against it will strengthen the CMA's decision and it will probably be the final nail in the coffin.
But if the FTC accepts the deal then I fully expect the CMA to cave due to pressure and market reputation.

[potatoseal]

Hold the line CMA *raises fist and chants* lol

[GotGame818]

Just like Bethesda PS only gamers will start saying EA sucks, and their games are crap, when this eventually goes through. It's laughable. Relax, nobody is forcing you to buy an Xbox.

[hotnickles]

Lol Brit trying to flex on the world stage. It would lose in any real court. The Ftc will probably lose. Who knows about UK or whatever tribunal they hold.

This is why global regulatory bodies are stupid. Why democracy fails in general. Fresh off of brexit and they want to be top shit for no reason other than puff the bird chest on dumb logic.

[Eonjay]

'Why democracy fails in general.'

That escalated very quickly. What exactly is your angle? What system would you prefer to impose on people? A totalitarian corporate autocracy perhaps?

[hotnickles]

No system at all. If we need it, it will get done without a universal “system” or political theatrics from “regulatory bodies”.

That’s also what you already have in America. Corporate autocracy and the royal elitists. The government is trash, protecting its corporate Allies and pillaging the treasury together. The courts are trash and rules by activism not by law, the police are trash enough said, the schools are trash enough said. It wouldn’t be hard to fix our system if we got rid of our system.

[CS7]

Lolol. This reaks of a naive teenager who spent too much time on the internet.

So what do you propose to organize society?
Socialism? Communism?

What do you think is the most successful society structure that has ever existed?

[hotnickles]

I dont think “society” can be organized in large quantities let alone coast to coast in something as large as america. You can’t run San Francisco like you do mobile Alabama. They have different needs, different wants. No one system to rule them all. No system at all.

Universal systems are for the naive. You don’t have to worry about it, your government will handle it, right? Meanwhile your government systems and federal reserve drove your country and currency into the dirt. Bravo.

Rome. Democracy killed that too.

[SeTTriP]

Your missing the point.you can't let big business control everything just because they have money and you can extrapolate that out into every facet of life.

Your wife leaves you because somebody has more money, or your kids want another parent/parents because they have more money then you, or somebody wanting the house you owned even tho you put hard work into it just because they have money and just want it.

It's a dangerous game to play and where do you draw the line?

[MrSec84]

Excellent points!

Nobody in their right minds should want these aquisitions of huge publishers to happen, especially when Microsoft have already bought one, a second should be an instant no go!

Why did Microsoft not just invest that level of cash into a bunch of new studios they've built from the ground up?!
Give to the industry and they'll change the way gamers view them in a positive way.

[hotnickles]

They get money by us buying their products and services. Who protects big business to the point they can’t fail? Who kills the competition? Our governments do. This acquisition is so minuscule compared to the corporate inbreeding in our government. Most big corps would fail instantly without the backing of our regulatory boards.

[repsahj]

Honestly, M$ doesn't need such a big acquisition, they really just want to deprive sony of the multi-platform games that generate too much income for the playstation.

[SoulWarrior]

Yep, and the worrying thing about this, is whether it goes through or not, MS won't be done, if the CMA stick to their decision, what's to stop MS trying to swoop up take 2 and/or EA or whatever other publisher? If it does go through eventually what's to stop them from doing that anyway and consolidating on an even more massive scale? If Activision is able to be bought, why not the smaller, albeit still big publishers? The precedent will have been set.

They can't out console Sony and Nintendo so they are launching an all out assault to make consoles irrelevant and turn gaming in to cloud subscription only trash with these enormous acquisitions, but hey it's fine as long as people get 'free' call of duty right?

[SeTTriP]

Nothing can stop them frfr.just imaging being on a governing body then someone offers you 3million just for you to raise your hand, you have kids bills expenses etc living pay day to pay day trying to maintain.

[frostypants]

Tl;dr: "We don't care, we're still not allowing it here."

[Kekewei]

I hope the deal be blocked in my country too, but ABK seems to have smelled something and pulled the business out of China early this year lol…

[Magatsuhi]

Sad part a put all this is all the dumbasses wanting the deal to go through especially on Twitter. Like 90% of comments are from people who are for the deal, it's sad and I've never seen so many people argue against their own interest.

[Chocoburger]

I have seen people argue against their own interests with Presidential Elections. There's actually a lot of common parallels between console wars and elections, which is frightening.

So many people are so ignorant they don't understand that they're harming themselves. And you can't educate them otherwise.

[SoulWarrior]

Most of it as a result of MS misinformation, astroturfing, paid shills, MS mouthpieces like Tom, Jez, and indoctrinating their fanbase to think that paying for a game is bad, not seeing the bigger picture as long as the games are 'free', and let's be honest, just wanting to stick it to PlayStation.

[Soulsborne]

Stay strong bois.

[343_Guilty_Spark]

I wonder if the CMA knew Sony bought two of the largest cloud gaming platforms at the time in Gaikai and Onlive and basically hung them out to dry…setting the cloud industry back years.

[MrSec84]

That's a complete fabrication, you conveniently leave out that Sony created PS Now from those platforms, which were tiny compared to where they are now and still uses it, providing access to all PS Plus Extra subs can use it, accessing way more games than are available through Gamepass.
They haven't left anyone out to dry.

Buying up a huge publishing and keeping games off of the biggest console platform to attempt to drive traffic to your platform is what Microsoft will no doubt do, it's their thing, taking from the industry to grow their business at the expense of the install base that wants to choose where to play their games.

[343_Guilty_Spark]

Where is PS NOW?

[MrSec84]

You know full well PS Now is included in PS Plus Extra, it's included with the service.

[MrSec84]

It's hilarious how certain people think the CMA will change their stance, they have valid concerns, are unbiased and want to protect UK competition, why should they allow some huge company to buy up what they want without restraint?

This doesn't stop Microsoft from pertnering with Activision to put CoD on Gamepass or stream those games, they can still make a deal between both companies.
Control is the issue and Microsoft should in no way be allowed to buy up every publisher they want to steer the industry in their chosen pathways.
This deal would create a monoply!

[rlow1]

The streaming market that is smaller than vr market. I don’t know where they thought the investment would come from? Because it takes a lot of money and infrastructure to build a network capable of doing a decent job of streaming.