CMA Blocks Microsoft’s Acquisition of Activision Blizzard

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The Competitors and Markets Authority (CMA) blocked what would have been the biggest deal within the gaming trade to this point on April 26, 2023. This choice brings consideration to numerous vital traits, together with:

  • In dynamic markets, regulators are focusing in on whether or not a deal harms or may hurt future competitors (i.e., innovation primarily based on predications elevating vital uncertainties). The CMA speculated that the deal would “alter the way forward for the fast-growing cloud gaming market” and most well-liked to keep up the established order with the block.
  • Regulators are focusing increasingly more on non-horizontal relationships and provide chain points, significantly if one occasion is vertically built-in. Whereas up to now, considerations may typically be remedied by way of behavioral commitments, increasingly more offers with a vertical part are actually being outright prohibited.
  • Whereas the trade expects the European Fee (Fee) to simply accept the behavioral treatment (license bundle) supplied by Microsoft, this case reveals as soon as once more that the CMA and the Fee can attain totally different conclusions when reviewing the identical transaction.

Learn extra right here.

Transaction Lawyer Nils Inventory contributed to this text.

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