September 29, 2023


Learn Business From Experience

CMA Blocks Microsoft’s Acquisition of Activision Blizzard

1 min read

The Competitors and Markets Authority (CMA) blocked what would have been the most important deal within the gaming business to this point on April 26, 2023. This choice brings consideration to numerous important traits, together with:

  • In dynamic markets, regulators are focusing in on whether or not a deal harms or might hurt future competitors (i.e., innovation based mostly on predications elevating important uncertainties). The CMA speculated that the deal would “alter the way forward for the fast-growing cloud gaming market” and most popular to take care of the established order with the block.
  • Regulators are focusing an increasing number of on non-horizontal relationships and provide chain points, notably if one social gathering is vertically built-in. Whereas previously, issues might typically be remedied by way of behavioral commitments, an increasing number of offers with a vertical part are actually being outright prohibited.
  • Whereas the business expects the European Fee (Fee) to just accept the behavioral treatment (license package deal) provided by Microsoft, this case reveals as soon as once more that the CMA and the Fee can attain completely different conclusions when reviewing the identical transaction.

Read more here.

Transaction Lawyer Nils Inventory contributed to this text.

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