On Wednesday, UK antitrust regulators blocked Microsoft’s plans to buy video game giant Activision Blizzard for $69 billion. It’s a major hurdle in what would be AOL’s biggest consumer tech acquisition since it bought Time Warner 20 years before him.
UK Competition and Markets Authority said in a statement It said Microsoft’s proposal “failed to effectively address concerns in the cloud gaming sector.”
The decision bolsters the Federal Trade Commission’s efforts to block the takeover, despite increased government scrutiny over whether it abuses power to harm rivals and consumers. , is a red flag for big tech companies looking to make big deals.
“Microsoft is already in a strong position in cloud gaming and has a head start over its competitors,” said Martin Coleman, chairman of the panel that conducted the CMA’s study. We can strengthen our advantage and undermine new and innovative competitors.” , said in a statement.
An FTC spokesman did not immediately respond to a request for comment.
Microsoft said it will appeal the ruling.
“After lengthy deliberation, this decision reflects a misunderstanding of how this market and related cloud technologies actually work,” Brad Smith, president of Microsoft, said in a statement. I am particularly disappointed that it seems to be.