Microsoft x ABK Deal Raises Concerns in UK: UK CMA Says EU was “Wrong” to approve the deal

Microsoft x ABK Deal was finally approved by the EU but the UK CMA raising concerns over EU's decision.


Microsoft x ABK Deal Raises Concerns in UK: UK CMA Says EU was “Wrong” to approve the deal

There has been a lot of heat going on with Microsoft’s acquisition of Activision Blizzard. Microsoft successfully received approval for the ABK deal from the EU. The company is trying to attain Activision Blizzard by offering a sum of $68.7 Billion Dollars. Microsoft is the main company behind one of the biggest gaming brands, Xbox. It has come under heavy fire from the UK Competition and Market Authority because of this acquisition deal. Over-the-top sanctions and restrictions are constantly blocking the deal. European Union’s governing body, European Commission, finally approved the deal on 15th May 2023. The Microsoft x ABK Deal only went forward because of the promise made by Microsoft. This is a big win for Microsoft, but it doesn’t seem to be over yet.

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Microsoft has committed to improving its existing cloud gaming services. Previously, UK’s Competition and Markets Authority had blocked the deal repeatedly. They had specified concerns over how Microsoft may monopolize the gaming market. The UK CMA made these accusations over the pretense of an unknown future without backing them up with any specific statements. Even after the deal has been solidified, the regulators continue questioning the Microsoft-Activision deal.

The UK CMA went as far as issuing a statement calling the EU “Wrong” because of their approval of the deal. The regulators are still criticizing the Microsoft-Activision deal due to their lofty beliefs. Moreover, considering UK’s Competitive & Market Authority’s stance, the acquisition of Activision Blizzard is still uncertain. This is because, to complete the deal, Microsoft has to receive the Approval of the UK CMA. In addition to the irrational stance of the UK CMA, it’s still criticizing the EU’s decision. However, this approval has given the lawyers at Microsoft considerable power to fight against the claims of the UK CMA.

Related: New CMA document explains how Microsoft-Activision deal could raise Xbox Game Pass prices

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Microsoft Promise and Deal with other companies

Microsoft x ABK Deal Raises Concerns in UK: UK CMA Says EU was "Wrong" to approve the deal

The biggest reason behind the European Commission’s approval of the Microsoft x ABK Deal is Microsoft’s commitment. Microsoft has promised to improve the current state of cloud gaming services. Cloud gaming is still a relatively new technology. A few issues need resolution before they can become fully wide-spread. One of the greatest problems is latency. We know latency as the time it takes for data to travel from the cloud to a user’s device.

High latency can cause gamers to experience lag and have a less satisfying gaming experience. Cloud gaming must deal with the issue of the cost of bandwidth. Customers might incur high costs due to the significant bandwidth usage of video game streaming. Microsoft has committed to resolving all these issues, moving forward with their deal.

Microsoft x ABK Deal Raises Concerns in UK: UK CMA Says EU was "Wrong" to approve the deal

Microsoft announced a partnership with Nvidia on February 21. This deal covers Xbox PC games from Activision Blizzard that are accessible via the GeForce Now cloud gaming platform. Its own Xbox Cloud Gaming is directly competed with by this cloud service. This demonstrates Microsoft’s dedication to enhancing Cloud Gaming Services.

Microsoft has also made several deals with gaming companies like Sony & Nintendo. For at least the next two years, Microsoft has committed to keeping Call of Duty and other Activision Blizzard titles on the PlayStation. Additionally, Microsoft has agreed to allow Nintendo Switch users to play Call of Duty and other Activision Blizzard titles. The most outspoken opponent of Microsoft’s acquisition of Activision Blizzard has been Sony. Sony has maintained that the agreement will give Microsoft an excessive amount of influence over the gaming market, making it hard for Sony to compete. The PlayStation will continue to be able to play Call of Duty and other Activision Blizzard titles, according to Microsoft. Microsoft has also stated that it is willing to collaborate with Sony on other video games.

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The agreements reached by Microsoft, Sony, and Nintendo show that the company is open to working with rivals. This solve the worries raised by the acquisition of Activision Blizzard. These agreements demonstrate Microsoft’s dedication to preserving the accessibility of Call of Duty and other Activision Blizzard titles for a broad spectrum of gamers. It’s still unclear when Microsft will get a green light from UK CMA regarding the Microsoft-Activison deal. As of right now, all we can do is see how the situation unfolds.

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