Yesterday, the CMA announced its big decision regarding Microsoft’s acquisition of Activision Blizzard and has decided to block the merger. Since the announcement, there have been numerous reactions including Microsoft’s Vice Chair and President Brad Smith who said: “We remain fully committed to this acquisition and will appeal. The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom. “We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies. We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.” Now, Activision Blizzard CEO Bobby Kotick, CMA Chief Executive Sarah Cardell, and more react to the news.

CMA Chief Executive Sarah Cardell disagreed with Smith, She told the BBC “I think this decision shows actually how important it is to support competition in the UK and that the UK is absolutely open for business,” she said. “We want to create an environment where a whole host of different companies can compete effectively, can grow and innovate.”

Kotick sent an open letter to staff saying that this “is far from the final word. We’re confident in our case because the facts are on our side: this deal is good for competition. This merger is a complex process, and I know I’m not the only one frustrated by the hurdles and delays. We’re accustomed to a company culture that moves quickly to accomplish big goals, so it’s tough when we can’t close things out at our usual energetic pace. We’ll keep pressing our case, because we know that this merger will benefit our employees, the broader UK tech workforce, and players around the world. I’m going to do everything I personally can to advocate for us and help regulators understand the competitive dynamics in our industry. What gives me confidence is that, whether on our own or united with another company, we are one of the strongest companies in our industry, poised for continued growth, and building on our incredible IP.”

Further explaining its decision. The CMA said “The deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch, and World of Warcraft. The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities.”

Microsoft has said it will appeal the CMA decision

The Competition Appeal Tribunal site says straightforward cases are aimed to be dealt with within 9 months – if MS wins it gets returned to the CMA

Chances of this closing this year are now slim. That means we get the FTC case

— Piers Harding-Rolls (@PiersHR) April 26, 2023

Industry analyst Piers Harding-Rolls said that the CMA wants to deal with most cases within nine months. If Microsoft wins, the case will be returned to the CMA. “Chances of this closing this year are now slim,” he added.