Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 28 (Xinhua) Microsoft plans to buy game developer Activision Blizzard for $69 billion, but it has been opposed by the British Competition and Market Authority (CMA). CMA believes that the deal will lead to higher prices, fewer choices and less innovation in the cloud gaming market.

Brad Smith, president of Microsoft, expressed dissatisfaction with CMA's decision, calling it "bad for the UK". "this has not only shaken our confidence in the future opportunities to develop our technology business in the UK, but it is also a challenge we have never faced before," he said in an interview with BBC. "people are shocked and disappointed, and people's confidence in British technology has been seriously shaken. Here is a clear message that the EU is better for starting a business than the UK."

Mr Smith also said Microsoft had pledged to provide long-term and equal call of Duty access to platforms such as Sony, Nintendo and Steam, and 75 per cent of respondents to CMA's public consultation "agreed that the deal would improve the competitiveness of the UK gaming industry".

Sarah Cardell, chief executive of CMA, defended the regulator's move, saying: "I think this decision shows how important it is to support competition in the UK and that the UK is a fully open market. We want to create an environment in which different companies can compete, grow and innovate effectively."

CTOnews.com previously reported that CMA blocked Microsoft's plan to buy Blizzard mainly because it thought it would give Microsoft a huge advantage in the emerging but fast-growing cloud gaming market and weaken competition in that market. CMA says cloud gaming is the fastest-growing area in the gaming industry, while consoles are a mature market. Microsoft already accounts for 60-70% of the world's cloud gaming services, and there are other trumps: Xbox, leading PC operating system Windows, and cloud service provider Azure.

Microsoft has agreed to offer some Blizzard games on some cloud platforms, including Nvidia, Boosteroid and Ubitus. But CMA said Microsoft's plan ignores competitive subscription models-gaming services similar to Netflix, or PC providers that do not use Windows. "[Microsoft's] proposal will not address our concerns and will replace competition in an emerging and dynamic market with ineffective regulation," CMA said.

Microsoft has said it will appeal CMA's decision, but it could take months to complete. Even if the appeal succeeds in overturning the regulator's judgment, it means the deal will be sent back to CMA to make a new decision.

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