The British regulator CMA has blocked Microsoft’s acquisition of Activision, claiming that cloud gaming innovation and consumer choice are at stake. Microsoft still has the right to appeal the decision, which is worth more than 68 billion dollars (62 billion euros). The CMA’s main concern is the cloud gaming market, rather than the potential influence on the console market. Microsoft had promised not to withdraw the popular Call of Duty from Sony’s PlayStation platform if the acquisition went through.
Earlier this year, the CMA revealed that Microsoft Cloud Gaming holds a 60 to 70 percent share of the cloud gaming market. Microsoft’s streaming service is bundled with its Game Pass subscription, which also allows games to be downloaded locally. The CMA cites the range of Microsoft services that contribute to its dominant position, such as the cloud services that benefit from the installed base of Xbox owners and Windows users, and the service running on the global cloud infrastructure of Microsoft Azure and data centers dedicated to Xbox Cloud Gaming.
The European Union is likely to approve the acquisition of Activision by Microsoft.
