The CMA has blocked the Microsoft Activision merger for the next 10 years.


Highlights of the story

  • According to the CMA’s final report, the ban will be in place to ensure that Microsoft and Activision do not attempt to merge for the next 10 years.
  • The CMA believes that this restriction will ensure that the existing competitive dynamics in the market remain unchanged.
  • Microsoft suggested that there were many reasons to weaken the Sony Interactive Entertainment and Google merger and that the prohibition would not have the effects that the CMA believed.
  • Accordingly, prohibition further removes competition by ensuring the continued success of competitors.

gave Final report by CMA There’s a lot to unpack, of which, one thing that may seem off-putting to many is the restriction on Microsoft Activation integration. The ban would prevent Microsoft and Activision from taking any steps towards their desired outcome for the next 10 years, the CMA said, citing the need to preserve existing competitive dynamics.

CMA Final Report
Final Report by CMA- Page 336

In short, the CMA believes that the Microsoft-Activision merger would cause undesirable changes in the current competitive dynamics of the market. To deal with such consequences, he has said, “Our norm would be to block mergers between parties for the next ten years, unchanged. The conditionsMicrosoft, on the other hand, has offered its thoughts on why a ban would be bad for competition.

Final report by CMA
Final Report – Page 337

Microsoft believes that SIE and Google have numerous reasons to block the merger and that “through [the] Prohibition, CMA is ensuring the continued success of competitors who have no incentive to increase competition.The CMA presented the views of several other parties whose names have been omitted from the report.

A third party presented its views on how this would not be an effective remedy because it would not only be inconsistent with the SLC’s finding, but would prevent Activision from entering into a long-term agreement with Microsoft, which It has the same effect as call distribution. Duty Franchise. Another side believed that this decision would be disastrous for cloud gaming and players who cannot access CoD titles.

Sony, on the other hand, explained some of the benefits of this ban and explained how this decision was made.Microsoft will protect against foreclosure tactics that may be used to prevent or defraud. Access to activation content.The CMA appears to share similar views and has therefore decided that this restriction would be the most effective way to prevent any risk or consequences of the merger from occurring.

In addition to the CMA blocking the Microsoft Activision merger, the final report also revealed how Microsoft tried to acquire at least one mobile game publisher. Despite all this, Microsoft is determined to show that it will continue to grow with or without the merger. Nevertheless, this will certainly cause a lot of problems for both Microsoft and Activision.

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