U.K. thwarts Microsoft's $69 billion bid for Activision Blizzard


Antitrust regulators in the United Kingdom blocked Microsoft's $69 billion acquisition of video game developer Activision Blizzard, impeding one of the tech industry's most significant deals "over concerns it will stifle competition in cloud gaming," CNN writes.
The U.K.'s Competition and Markets Authority said it was concerned the proposed deal would lead to "reduced innovation and less choice for U.K. gamers over the years to come." The regulator added that if Microsoft acquired Activision, it would make the tech giant "even stronger" in cloud gaming, an emerging market in which the company already has a 60-70 percent share of the global market.
"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," the CMA continued in a statement.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The U.K. is not the first country to challenge the deal, which "has been met with growing opposition by antitrust regulators worldwide," CNN adds. The Federal Trade Commission in the United States sued to block the merger over similar concerns about hampering innovation. A hearing in the case is scheduled for August. The European Union is also evaluating the acquisition.
The U.K. regulator's "surprising ruling" was a "clear victory for proponents of regulating tech giants like Microsoft, Amazon, Apple, Google, and Meta, Facebook's parent company," says The New York Times. Efforts to reign in the tech industry, "fueled by fears that the companies wield too much power over online commerce and communications, have been stymied in the United States by recent court losses and legislative failures," the Times adds.
Both Microsoft and Activision say they intend to appeal the U.K.'s decision. "Alongside Microsoft, we can and will contest this decision, and we've already begun the work to appeal to the U.K. Competition Appeals Tribunal," Activision Blizzard CEO Bobby Kotick said in a statement.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns