Microsoft has officially launched an appeal against Britain’s Competition and Markets Authority (CMA) after it vetoed Microsoft’s proposed $69 billion takeover of Activision Blizzard, the renowned maker of “Call of Duty.” The appeal is based on Microsoft’s claim that the CMA’s assessment of its cloud gaming services contained “fundamental errors,” leading to an incorrect conclusion that the deal could harm competition in the emerging cloud gaming market.
In April, the CMA raised concerns about the potential negative impact of the acquisition on the nascent cloud gaming sector, prompting the regulatory body to block the deal. However, Microsoft’s appeal, filed with the Competition Appeal Tribunal (CAT), argues that the CMA’s conclusion regarding a significant decrease in competition within the UK’s cloud gaming market is flawed. The company asserts that the CMA’s calculations and assessment of market share data for cloud gaming services contain inaccuracies.
Microsoft has outlined five specific grounds for its appeal against the CMA’s decision, highlighting alleged errors in the regulator’s evaluation. The unexpected block on what would have been the largest gaming industry deal to date evoked strong reactions from both Microsoft and Activision Blizzard.
By challenging the UK regulator’s ruling and taking the appeal to the Competition Appeal Tribunal, Microsoft aims to overturn the decision and proceed with the acquisition of Activision Blizzard. The outcome of the appeal will be closely monitored, as it has significant implications for the future landscape of the cloud gaming market.
