microsoft atcivision-blizzard (photo: official website, Microsoft)
Throughout the last year, the giant purchase of Activision-Blizzard-King by Microsoft was examined before the various regulatory bodies around the world.
Yesterday evening (Wednesday 26.4) the Competition and Markets Authority in Great Britain decided not to approve the deal on the grounds that it might tip the scales in Microsoft's favor in the gaming industry through cloud technology.
The regulators in the UK determined that Microsoft has a prominent advantage in the cloud technology market and is responsible for approximately 60-70% of cloud services worldwide.
All the findings showed that approval of the purchase "will be commercially beneficial to it if it turns the Activision-Blizzard games into its services."
The topic of discussion continues to be around the exclusivity of games like Call of Duty or World of Warcraft and their exclusivity for Microsoft services.
The UK Competition and Markets Authority claims that if the purchase is not approved, Activision-Blizzard will have no choice and will naturally offer its games in the future to additional cloud services, and not only to Microsoft.
"Cloud technology allows gamers in the UK to avoid purchasing expensive games and allows them flexibility in the way they play. Approving the purchase at a time when the market is rapidly growing will only allow Microsoft to take a strong position in the market and may undermine the innovation that is essential for developing business opportunities in the future," the regulators wrote in their decision.
Both Brad Smith, the president of Microsoft, and Bobby Kotick, the CEO of Activision-Blizzard, expressed regret and indicated that they would appeal the "regulators' decision that stems from a lack of understanding of the cloud market". Activision-Blizzard Games.
It offered several contracts that would ensure that the titles would also be marketed for competing platforms for at least 10 years. Among them could be found Nintendo, Nvidia's cloud service, and several other cloud services such as Boosteroid, which are active mainly in Europe. In fact, Microsoft already We mentioned that their big ambition is to open a mobile store that will compete with Google and Apple, and it wants to rely mainly on the audience of the developer King, which is responsible for games like Candy Crush.
Microsoft needs the approval of the UK regulators in addition to the approval of the US Federal Trade Commission and the European Markets and Competition Authority. Next month (May) the European Markets and Competition Authority is expected to publish its conclusions. The US Trade Commission decided not to approve the acquisition, and last December they submitted Antitrust lawsuit.
Microsoft also appealed to the court.
Currently, the countries that have given their approval for the purchase are Saudi Arabia, Brazil, Japan, Serbia, South Africa and Chile.
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