The CMA has blocked Microsoft’s takeover of Activision, as it would "alter the future of the fast-growing cloud gaming market", leading to reduced innovation and fewer choices for UK gamers.
The decision was taken after Microsoft "failed to address" the concerns expressed by the CMA in February, following an investigation over the deal that would have seen Xbox-maker Microsoft acquire hit titles such as Call of Duty and Candy Crush in the “biggest takeover in tech history”.
The CMA reached its conclusion after analysing over three million Microsoft and Activision documents and more than 2,100 emails from the public. The regulator's main concern was the risk that Microsoft would make Activision’s games exclusive to its existing cloud gaming platform, Xbox Game Pass, cutting off distribution to other key players in the space.
“Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that...