After a period of anticipation, Microsoft has completed its $69 billion acquisition of gaming giant Activision Blizzard, a move with potential implications for the swiftly evolving cloud gaming market.
Though the deal had gained approvals from various regulatory bodies, it encountered a challenge from the UK’s Competition and Markets Authority (CMA) earlier in the year. This event underscores the CMA’s growing influence in global tech regulation post-Brexit.
Initially, the British regulator opposed the acquisition in April, expressing concerns about Microsoft’s extensive control in the cloud gaming sphere. The CMA’s firm stance proved effective, leading Microsoft to agree to sell streaming rights for popular Activision titles like “Call of Duty” and “Candy Crush Saga.” This concession allayed worries about diminished competition and choices for gamers.
The CMA’s actions set a precedent not only in the UK but for other nations grappling with the influence of major tech players across various sectors. Notably, the CMA was the sole regulatory body to secure such a concession from Microsoft, underlining its dedication to economic growth and consumer welfare.
This acquisition strengthens Microsoft’s position in the thriving mobile gaming market, valued at over $90 billion, an area where industry leader Sony has less impact. Analyst Michael Pachter of Wedbush Securities pointed out that Microsoft instantly gains over “$3 billion of mobile revenues,“ enriching its Game Pass subscription service with a wealth of enticing content for gamers.
While the acquisition is a significant win for Microsoft, it also signifies a triumph for regulators committed to ensuring fair competition in rapidly expanding industries. CMA Chief Executive Sarah Cardell emphasized that this successful outcome was possible because the regulator remained “free from political influence,” despite resistance from Microsoft and limited support from the British government.
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