Even after the UK competition regulator, the CMA, formally opposed the $69 billion acquisition of Activision Blizzard by Microsoft, industry observers emphasize that the negotiation is far from finished. The dispute centers on how the merger would reshape competition in cloud gaming and digital distribution across major markets in North America and beyond. The decision signals a pivotal moment, but it does not end the debate or the path to a potential settlement.
“The facts are on our side”
The chief executive of Activision Blizzard spoke to private media about the development. He noted that the CMA has decided against approving the merger without modifications and stressed that this is not the final word in the discussions with Microsoft. The spokesperson underscored that additional rounds of negotiation remain possible as the parties seek a path forward that addresses competition concerns in the cloud gaming space.
The CMA’s Wednesday resolution said that Microsoft’s proposed remedy did not adequately resolve the regulator’s cloud gaming concerns. To respond to regulatory expectations, Microsoft had previously signed long-term distribution agreements with several cloud gaming platforms, including GeForce Now, Boosteroid, and Ubitus, extending these deals for a decade. This move reflects an effort to demonstrate commitment to open pathways for competition and wider access to cloud-enabled titles.
UK video game industry could face investment slowdowns
As the Competition Court’s assessment circulated, Microsoft’s leadership signaled a readiness to challenge the ruling. The executive team indicated that an appeal would be pursued, and dialogues with Microsoft on the path forward had already begun. The executive asserted confidence in the case, arguing that the arguments and evidence strongly support competition and consumer benefits in the long run.
The executive also highlighted the broader value of the UK tech landscape, emphasizing progress in machine learning and AI. He suggested that the merger would bring potential benefits by combining strengths in the United Kingdom and the United States, enabling quicker access to advanced technologies for developers and players alike. He warned that a sustained CMA decision against the deal could dampen investment, reduce competitive pressure, and limit job growth within the industry.
He described the merger as a complex process that has understandably stirred frustration among stakeholders who want a faster resolution. The pace of major tech negotiations often tests organizational energy, and delays are felt across teams that rely on rapid access to new capabilities and content wins.
a renewed effort
Speaking about the strategy moving forward, the executive stated a firm commitment to defend the industry dynamics and to help regulators understand the competitive landscape. He expressed belief in the strength of Activision Blizzard, whether operating alone or in collaboration, and stressed readiness for continued growth and investment in the company’s intellectual properties.
Following the appeal, Microsoft aims to keep the process moving with a view toward a substantial transaction value. The goal is to secure a path that aligns with open competition in a rapidly evolving market for video games and related technologies. Since the deal first surfaced in early 2022, various stakeholders have explored every available option to influence the outcome. Yet this round does not declare a winner; the discussion continues with the aim of balancing innovation and consumer choice.