UK antitrust regulators were concerned about how the deal would affect cloud gaming, which streams to tablets, phones and other devices, and frees players from buying expensive consoles and gaming computers|Kjeff| CC BY-SA 4.0
Microsoft’s $69B acquisition of video game maker Activision Blizzard was blocked by UK antitrust regulators on Wednesday.
The UK fears that it would stifle competition for popular titles like Call of Duty in the fast-growing cloud gaming market.
Cloud gaming fears
The Competition and Markets Authority (CMA) was concerned about how the deal would affect cloud gaming, which streams to tablets, phones and other devices, and frees players from buying expensive consoles and gaming computers. Gamers can keep playing major Activision titles, including mobile games like Candy Crush, on their platforms.
CMA said that “the only effective remedy” to the substantial loss of competition “is to prohibit the merger.”
Small market in the UK
The deal, announced 15 months ago, faced stiff opposition from rival Sony, which makes the PlayStation gaming system. Regulators in the US and Europe also scrutinized it over fears that it would give Microsoft and its Xbox console control of hit franchises like Call of Duty and World of Warcraft.
The Federal Trade Commission (FTC) sued Microsoft to stop the deal.
Cloud gaming is a small portion of Britain’s $6.2 billion video game market. But a forecast suggested it will see explosive growth over the coming years.