CMA Stands Firm on Activision Buyout Despite Antitrust Concerns

The UK competition watchdog is sticking to its decision approving Microsoft’s Activision Blizzard acquisition, dismissing objections from the EU regulator.

The UK’s Competition and Markets Authority or CMA has stood by its September decision to greenlight Microsoft’s $69 billion purchase of video game giant Activision Blizzard, rejecting concerns from the European Commission that the merger could reduce competition.

The CMA approved the deal in September after Microsoft agreed to offer certain gaming commitments, including making some Activision Blizzard games available on rival consoles when existing agreements expire. However, the European Commission warned last month that the UK agency’s remedies were insufficient to address competition concerns.

However, the CMA has now firmly stood its ground, maintaining that its approval and proposed undertakings would be enough to protect consumers and competition in the UK gaming market.

Microsoft and Activision Blizzard welcomed the CMA’s stance, with the software giant saying it would work closely with regulators around the world to closing the transaction. The deal still faces scrutiny from EU and US regulators.

The UK competition watchdog’s stance underscores the divergence forming in global antitrust regulation, with the EU tending towards a stricter approach and the US seen as more lenient. The divided response also highlights the complexities of multinational dealmaking amid differing regulatory environments.

In conclusion, while the UK competition authority has given its approval for Microsoft’s Activision buyout, antitrust regulators in the EU and US continue to examine potential competition issues arising from the massive deal. The differing regulatory responses underline the evolving global antitrust landscape for tech companies and mega acquisitions.

What deal is the CMA approving?

The CMA is approving Microsoft’s $69 billion acquisition of video game publisher Activision Blizzard.

What concerns does the European Commission have?

The European Commission warned that the CMA’s proposed remedies to address competition issues were insufficient and could reduce competition in the gaming market.

What remedies did the CMA propose?

The CMA required Microsoft to offer some Activision Blizzard games on rival consoles when existing agreements expire and make some other commitments to assuage competition concerns.

Why does the CMA still approve the deal?

The CMA maintains that its approval and proposed remedies would be sufficient to protect consumers and competition in the UK gaming market.

What does Microsoft say about the CMA’s approval?

Microsoft welcomed the CMA’s decision and said it will continue working with regulators around the world to close the transaction.

Are there still regulatory hurdles?

Yes, the deal still faces scrutiny from EU and US antitrust regulators.

What does the diverging response show?

It shows differences in global antitrust regulation, with the EU tending towards a stricter approach and the US seen as more lenient.

How complex is multinational dealmaking?

Multinational dealmaking is complex as it needs to navigate differing regulatory environments and antitrust approaches across jurisdictions.

What is the ultimate outcome of the deal?

The ultimate outcome of the deal remains unclear as it still requires approvals from various antitrust regulators globally.