Blocking Activision deal, Microsoft’s ‘darkest day’ in UK
The UK’s Competition and Markets Authority (CMA) announced yesterday that after months of investigation, it has finally concluded that Microsoft and Activision’s closing deal will harm competition in the gaming industry. Activision’s contract, if concluded, will give Microsoft control over popular series such as Call of Duty and World of Warcraft.
Britain’s Competition and Markets Authority says it opposes Microsoft’s deal with Activision as it aims to protect the “cloud gaming market”. According to some estimated statistics, the cloud domain constitutes only two percent of the gaming industry.
Britain’s opposition comes as Microsoft has signed 10-year deals with a number of its cloud rivals, such as Nvidia, to show it has no desire to stifle competition.
Brad Smiththe head of Microsoft, in an interview with BBC He said blocking the Activision deal was Microsoft’s “darkest day” in its 40-year history in the UK.
Smith believes that it has become much harder to invest in the UK and that somewhere like the EU is better for business. Brad Smith says Microsoft is reassessing how it invests in the UK.