Microsoft’s Acquisition of Activision Blizzard Hindered by CMA

Unsatisfactory Agreements with Competitors

The decision is surprising, as Xbox recently signed strong contracts lasting over 10 years with competing industry players, such as Nvidia’s GeForce NOW, Boosteroid, and Ubitus. However, the CMA examined these agreements and deemed them insufficient, presenting a “significant number of flaws”. Among these flaws are a low number of cloud gaming services covered by the contracts, a limited scope to providers interested in offering game versions on operating systems other than Windows, and the standardization of terms and conditions for title availability.

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Microsoft and Activision Blizzard to Challenge the Decision

Despite the opposition, Microsoft and Activision Blizzard have confirmed their intention to challenge the decision and proceed with the acquisition. Brad Smith, Microsoft’s vice president, reiterated the commitment to the purchase and stated:

“the decision seems to reflect a misunderstanding of the market and the actual functioning of the cloud technology involved”.

On his part, Bobby Kotick, CEO of Activision Blizzard, asserted that

“this is not the outcome [Microsoft and Activision] hoped for – but it’s certainly not the end of the discussions”.