Activision and Microsoft have both released statements suggesting they intend to appeal the UK regulator’s decision to ban their merger.
The UK Competitions and Markets Authority said earlier today that it had “prevented” the deal “over concerns that the deal would damage competition in the Cloud Gaming market.”
Microsoft’s vice chair and president, Brad Smith, told GamesRadar+ –
“We remain fully committed to this acquisition and will appeal.”
Smith asserts that “the CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom” and draws attention to the numerous cloud gaming partnerships Microsoft has established in recent months.
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In a statement provided by an Activision spokesperson, the publisher said that –
“The CMA’s report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”
In a note to employees, Activision CEO Bobby Kotick reiterated that “we can and will contest this decision,” adding that “we’ve already begun the work to appeal to the UK Competition Appeals Tribunal.”
Even though Microsoft has been confident in recent days, the CMA’s ruling makes it much harder for the company to buy Activision. It’s not clear how long an appeal would take, but that makes it hard to believe that the deal will be done by the summer as planned.