Microsoft faced significant challenges securing approval from the UK Competition and Markets Authority (CMA) for its $68.7 billion acquisition of Activision Blizzard. The CMA blocked the deal, citing concerns about stifling competition in the cloud gaming market. At the time, Microsoft’s president, Brad Smith, criticized the decision as “bad for Britain” and deemed it Microsoft’s “darkest day” in four decades of operation in the country. However, it seems he has had a change of heart since then.
During an interview on BBC Radio 4’s Today program, Smith remarked that the British regulator is “rigorous and impartial.”
“I have undoubtedly gained personal insights. While I wouldn’t completely retract the concerns I expressed back in April, I might articulate them differently,” he conveyed in the interview.
Microsoft’s revised deal
Following an initial rejection of the merger, the CMA extended an opportunity for cooperation, urging Microsoft to modify the deal to address regulatory concerns about competition. In response, Microsoft reorganized the Activision Blizzard deal, granting crucial cloud gaming rights to Ubisoft.
“The CMA adhered to a stringent standard, and I acknowledge that. In my opinion, it was rigorous and impartial. It compelled Microsoft to modify the proposed acquisition of Activision Blizzard, specifically spinning out rights related to cloud gaming that raised CMA concerns,” Smith emphasized.
What Smith said earlier
In an interview with the BBC, Smith expressed Microsoft’s deep disappointment with the CMA’s decision, stating, “Unfortunately, I believe it’s not just disappointing; it’s also detrimental to Britain.”
“It goes beyond merely undermining our confidence in the potential for technology business growth in Britain, a challenge of a magnitude we’ve never faced before. Shock, disappointment, and a significant erosion of confidence in the UK’s technology sector prevail among the people,” he remarked.
Smith further conveyed, “The message is evident – the European Union presents a more appealing environment to initiate a business compared to the United Kingdom.”
