The U.K. Competition and Markets Authority (CMA) has blocked Microsoft's $69B acquisition of Activision Blizzard, hindering Microsoft's expansion plans for the metaverse.
This would be the largest deal in Microsoft's history, the Washington Post reports.
The CMA's decision to block the acquisition is based on concerns that Microsoft's ownership of Activision Blizzard could lead to exclusive releases of popular titles on its Games Pass, potentially stifling competition.
- The purchase of Activision Blizzard was seen as a strategic move by Microsoft to expand its gaming business across various platforms, including PCs, mobiles, consoles, and the cloud.
- The CMA highlights the risk of undermining innovation and competition in the rapidly growing cloud gaming market if the acquisition goes ahead.
- Despite the CMA's decision, Microsoft plans to appeal the block, emphasizing its commitment to resolving the concerns.
- The acquisition would provide Microsoft with extensive resources for creating immersive experiences in the Metaverse, where the gaming and Metaverse talent and resources intersect.
Microsoft is also focusing on enterprise-facing immersive solutions, including developing its Mesh software and integrating immersive avatars in its workplace suite, Teams, to enhance remote collaboration.
