Microsoftexecutives are not happy about the CMA’s decision to block the company’s acquisition of Activision Blizzard, with the company’s President calling it a “bad day for Britain.” He suggested that the CMA regulator was jeopardizingMicrosoft’s willingness to do business in the United Kingdom.
Microsoft’s announced its purchase of Activision Blizzard in January 2022, but the process still needed approval from international regulators. A core part of the contention is whether Microsoft’s conclusion of another major publisher violated US, UK, and EU antitrust laws designed to prevent corporations from forming monopolies. The United Kingdom’s Competition and Markets Authority recentlyblocked Microsoft’s acquisition of Activision Blizzard. The CMA justified its decision on the grounds that the acquisition reinforced Microsoft’s stranglehold on the emerging gaming market. However, Microsoft has announced plans to appeal the decision.
RELATED:Analysts Weigh in on Status of Activision Blizzard Deal After CMA Decision
Microsoft’s President and Vice-Chairman Brad Smith voiced his opinions on the decision, saying it’s a “bad day for Britain” and calling on UK Prime Minister Rishi Sunak’s government to “look hard” at the regulatory body. Smith described it as “probably the darkest day in our four decades in Britain” and explained how the decision significantly undermined Microsoft’s confidence in its ability to grow its business in Britain, damaging their relationship more than anything before. Smith also described people’s shock and disappointment with the decision and drew unfavorable comparisons between the CMA and its EU counterparts, with whomMicrosoft is attempting to reach a compromise.
These comments mark a dramatic shift in the tone of how Microsoft has approached the regulatory agencies regarding itsActivision Blizzard buyout. The company, Smith included, has previously pursued what some describe as a “charm offensive” in its efforts to woo governments. However, the tone of Smith’s statements has led some to wonder if the company’s mask might be slipping now that Microsoft isn’t getting its way. This was effectively the opinion of Max von Thun, a prominent proponent of more robust antitrust enforcement, who compared Smith and Microsoft to an upset baby throwing its toys out of the stroller.
Microsoft once had a much more openly antagonistic relationship with antitrust regulators and nearly had to break up its business in the 1990s. However, the company switched tactics in the 2000s, taking a more conciliatory and cooperative approach. Microsoft’s reputation as a more reasonable corporation may have helped it slip under the radar. However, that doesn’t seem to have worked this time. The CMA’s decision may also have an impact onMicrosoft’s upcoming FTC trial, with the CMA’s chief executive noting that the two agencies were in alignment on the issue.
MORE:Dead Space Could Be the Framework for a Halo Flood Spin-off
