The spokesperson of Rishi Sunak, Prime Minister of the UK, responded toMicrosoft’s criticism. Both Activision andMicrosoftlevied strong comments against the UK and its willingness to accommodate businesses. Therefore, a response from the government was not surprising.The Competition and Markets Authority of the United Kingdom made the decision earlier this week toblock the Microsoft Activision Blizzard deal. The reason given for this measure was to protect innovation and choice in cloud gaming. Shortly after the decision both Activision and Microsoft made statements condemning the CMA’s choice. Activision declared that the decision is a disservice to the citizens of the United Kingdom as they already face a difficult economic situation. Later on in its statement added: “The UK is clearly closed for business.” Brad Smith, vice chair and president of Microsoft, also expressed similar sentiments by saying the European Union now seems to be a better place for companies compared to the UK. He also shared his opinion that the CMA’s decision is “bad for Britain.“RELATED:Nvidia GeForce Now Defends Microsoft’s Activision Blizzard AcquisitionThe Prime Minister’s spokesperson responded to the words of Brad Smith, saying thepresident of Microsoft was wrong to declaresuch things. “Those sorts of claims are not borne out by the facts,” the spokesperson added. Furthermore, the government’s position on the matter was clarified, saying the UK would still engage with Microsoft, however, the CMA operates independently. Sarah Cardell, the chief executive of the CMA, also reacted to Brad Smith’s statement. “I think this decision shows actually how important it is to support competition in the UK and that the UK is absolutely open for business.” She added the CMA wants to create the kind of environment that helps various businesses to grow and compete successfully while leaving space for innovation.
Although Smith characterized the CMA’s block as “probably the darkest day” in Microsoft’s four-decade spent in the UK, the company is not ready to give up fighting. There will definitely be an appeal against the decision in the hopes ofcompleting the $68.7 billion deal with Activision Blizzard. While the appeal is certain, analysts are divided on whether it will take months or years. It’s also difficult to imagine the decision will not influence both the European Commission and the Federal Trade Commission in the US. Both regulatory agencies are yet to make their own decision about the deal. The final ruling is expected from the EU after May 22, while the FTC starts its hearing on August 2.
Currently, it’s impossible to deny that tensions are riding high. Regardless,Microsoft is moving forward by making more deals. There are also companies, such as Nvidia GeForce and Boosteroid, who already signed a 10-year deal that are coming out in defense of the Activision Blizzard acquisition.
