After days of waiting, Microsoft has successfully closed its $69 billion acquisition of video game company Activision Blizzard, a move that could have potentially disrupted the rapidly-developing cloud gaming market. While the deal had already gotten approvals from various regulatory bodies, it hit a snag with the UK’s Competition and Markets Authority (CMA) earlier this year. The deal marks a key moment, highlighting the CMA’s growing influence in global tech regulation since Britain’s exit from the EU.
Microsoft now has access to a huge mobile gaming market
The British regulator initially blocked the acquisition last April, citing concerns over Microsoft’s overwhelming control over cloud gaming. The CMA’s tough stance paid off when Microsoft agreed to sell streaming rights for Activision’s popular titles, including “Call of Duty” and “Candy Crush Saga,” alleviating fears of reduced competition and choice for gamers.
This move by the CMA didn’t just resonate within the UK but set a standard for other nations grappling with big tech’s increasing sway over multiple sectors. Interestingly, the CMA was the only regulatory body to force such a concession from Microsoft, emphasizing its commitment to economic growth and consumer welfare.
The acquisition boosts Microsoft’s play for the more than $90-billion mobile gaming market, a sector where Sony, the industry leader, has lesser impact. Michael Pachter, a Wedbush Securities analyst, noted that Microsoft gains over “$3 billion of mobile revenues” instantly, filling its Game Pass subscription service with an array of content that’s sure to attract more gamers.
While the deal appears to be a win for Microsoft, it can also be viewed as a victory for regulators committed to ensuring fair play in rapidly growing industries. Sarah Cardell, CMA Chief Executive, indicated that this outcome was possible because the regulator remained “free from political influence,” despite pushback from Microsoft and limited support from the British government.
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