British regulators blocked Microsoft's $75B acquisition of video game maker Activision Blizzard, saying the deal would harm competition.
Microsoft says it will appeal the decision, which delivers a significant blow to the largest-ever deal in gaming.
- The British Competition and Markets Authority (CMA) said the deal would lead to less innovation in the gaming industry and fewer choices for British gamers.
- It said that if the deal were to go ahead, Microsoft could make Activision Blizzard games, such as "Call of Duty" and "Overwatch," exclusive to its own cloud gaming service.
- In an effort to alleviate CMA's concerns, Microsoft brokered licensing deals with its rivals, including one to bring Xbox PC games to Nvidia’s cloud gaming service.
- Another 10-year contract with Nintendo would ensure that "Call of Duty" games are released to Nintendo players on the same day they're launched on Xbox, with the same content.
- However, the CMA said these deals had "significant shortcomings” and are “too limited in scope."
- The European Commission is set to issue a decision on the acquisition by May 22.
- The U.S. Federal Trade Commission sued Microsoft in December to block the acquisition; a hearing on the matter is scheduled to take place in August.
