Microsoft’s bid to acquire Activision Blizzard has encountered a major stumbling block from UK regulators.

After a long investigation, the UK’s Competition and Markets Authority (CMA) has blocked Microsoft from proceeding with the acquisition, seemingly due to concerns over potential negative effects on Sony’s Playstation, as well as its potential to harm UK gamers through “higher prices, fewer choices, or less innovation”.

This is a major blow to the deal’s success, as it will need approval from the UK’s CMA, the EU’s European Commission, and the US’ FTC, the latter of which also announced plans to oppose the deal previously.

As one may expect, Microsoft plans to appeal the CMA’s decision, with  Microsoft president Brad Smith having this to say:

“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 150m 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.”

Activision Blizzard also issued their own statement in opposition to CMA’s decision, seen below:

“The CMA’s report contradicts the ambitions of the UK to become an attractive country to build technology businesses,” an Activision Blizzard spokesperson said. “We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”

Stay tuned for more updates as they come.

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