United Kingdom bars purchase of Activision by Microsoft – 04/26/2023 – Tech

Britain will block Microsoft’s $69 billion purchase of video game maker Activision Blizzard over concerns about competition in the streaming market, an unexpected blow to the industry’s biggest takeover. of all time.

The country’s antitrust regulator said on Wednesday that Microsoft’s commitment to offer access to Activision’s multibillion-dollar “Call of Duty” franchise to major video game platforms does not effectively address the concerns.

Microsoft said in a statement that it remains fully committed to the Activision acquisition and will appeal the decision, while the video game maker said it would “work aggressively” with the company to reverse it.

“We will be reassessing our growth plans for the UK,” said Activision. “Global innovators large and small will realize that, despite all the rhetoric, the UK is clearly closed for business.”

Activision shares fell more than 10% in premarket North America.

The UK’s decision comes after the Markets and Competition Authority (CMA) last month brushed aside its concerns about the deal’s impact on the console market currently led by Sony’s PlayStation.

The ruling left streaming services as one remaining hurdle, which Microsoft sought to overcome with promises of signing licensing deals with platforms from companies including Valve, Nvidia and Boosteroid.

Microsoft had previously offered Sony, a vocal opponent of the deal, a ten-year “Call of Duty” license on the PlayStation.

Europe will decide on Microsoft’s purchase of Activision by May 22nd. The United States Federal Trade Commission is also against the deal.