Microsoft has formally appealed the veto of the British CMA to the purchase of Activision Blizzard, and it’s no surprise. As reported Bloombergthose of Redmond have made the corresponding presentation before the Court of Appeals of Competition of the United Kingdom, for which they had time until today.
In this way, a review process will be launched that could last up to 9 months. If the judges rule in Microsoft’s favor on appeal, the case will go back to the CMA for further review. There, the Americans hope to achieve a change in the position of the regulators and obtain the go-ahead to take control over the publisher of call of duty and world of warcraftamong other franchises.
It will be interesting to see what happens going forward. Let’s not forget that the UK Markets and Competition Authority objected to the $68.7 billion worth of acquisition on the grounds that would give Microsoft an anti-competitive advantage in the cloud gaming segment. The North Americans have denied it, assuring that their plan is to bring their titles —including those of Activision Blizzard— to as many platforms as possible, regardless of whether they rival Xbox Cloud Gaming.
In fact, last week the first PC game from Xbox Games Studios debuted (gear 5) on NVIDIA GeForce Now, with more coming in the next few hours. Likewise, it was announced that the company’s first titles will arrive in Boosteroid, another online video game platform, in June. And the agreement signed with the Spanish company Nware is expected to come into force soon.
Microsoft hopes that these agreements will serve to change the mind of the CMA and, finally, approve the purchase of Activision Blizzard. Even so, the panorama appears quite complicated.
Microsoft seeks UK approval for Activision Blizzard purchase
Microsoft has already cleared a major regulatory hurdle, after winning approval from the European Commission. Nevertheless, the United Kingdom quickly came out to express that it disagreed with the EU decision. Therefore, it is difficult to think that he can change his position regarding the acquisition of Activision Blizzard
“Microsoft’s Proposals […] they would replace a free, open, and competitive marketplace with one subject to continued regulation of the games Microsoft sells, the platforms it sells them to, and the terms of sale. This is one of the reasons the CMA’s independent panel prevented this deal. While we recognize and respect that the European Commission is entitled to take a different view, the CMA stands by its decision,” the UK regulators said.
Undoubtedly, Microsoft is playing a transcendental card to close the deal. If they receive a new refusal, it will be necessary to see what alternative measure they take so as not to throw everything overboard. There is already speculation that Activision Blizzard will create a separate entity for the UK that fits its guidelines. However, the primary intention would be to avoid this path. He crux of the question is that the CMA has never reversed its decision before a case reviewed by the Competition Appeals Tribunal.
While all this is happening, another story is brewing in the United States. There, those of Phil Spencer must fight with the FTC to obtain the approval of the purchase of Activision Blizzard. As the trial between the parties would not start before augustNo news would be expected until the end of the year as the most optimistic date.