Tech giant Microsoft receives approval from the Competition and Markets Authority (CMA) for its acquisition of Activision, making it the biggest deal in gaming history. The revised deal aims to prevent market monopolization and ensure competitive prices and choice for consumers.
In a marked turn of events, tech giant Microsoft has bagged approval from the Competition and Markets Authority (CMA) to proceed with its acquisition of Activision, the esteemed Call of Duty developer, making it the largest deal in gaming history. The approval eliminates the final regulatory block for the deal to be completed, marking a game-changing victory for Microsoft.
Microsoft’s deal, with an initial value of a whopping $69 billion, was stunted by the CMA in April as it threatened to saturate the UK’s burgeoning cloud gaming market. Thankfully for gaming enthusiasts everywhere, the revised deal will inhibit Microsoft from monopolising this market, helping maintain competitive prices and provide more choice for consumers.
Activision’s cloud gaming rights will not fall into Microsoft’s lap, but will instead be procured by Ubisoft, the manufacturer of the widely successful Assassin’s Creed games.
Despite the concluded deal, the CMA didn’t hold back its criticism of Microsoft’s tactics throughout the investigation, labelling them as “not the way to engage” with the regulatory body. Sarah Cardell, the chief executive of the CMA, lamented that Microsoft had the chance to amicably restructure the deal during the initial investigation but proceeded to insist on unfeasible measures.
Continuing in the roundelay of regulating authorities and major corporate maneuvers, European gas prices are experiencing a steep climb due to a maelstrom of geopolitical risks, damage to gas supply infrastructure and capricious weather conditions. The disrupted gas sector has been caught up in the wake of ongoing conflict in Israel and pipeline damage between Finland and Estonia, not to mention the incoming Arctic cold snap that’s projected to drive up heating usage, and in turn, gas prices.
This energy crisis is a second unwanted winter guest, following last year’s shortage of significant gas supply from Russia amid the persistent Ukrainian conflict. Despite forecasts of a warmer season, a cold snap looms on the horizon, suggesting a chilling price hike in energy alongside falling temperatures. This issue underscores the necessity for rigorous security measures by gas suppliers.
Back in the arena of gaming and tech, the CMA doubled down on its defence concerning the decision to green-light Microsoft’s acquisition of Activision. The barrier was finally lowered on the heels of Microsoft’s significant concessions, including the release of Activision’s cloud gaming rights outside Europe.
Microsoft, with its significant market dominance through Xbox and Windows platforms, drew concerns as the acquisition was scrutinised. But, as the dust settles on the deal, Brad Smith, Microsoft’s president, expressed his relief and elation over the deal’s completion. He went on to posit the far-reaching potential benefits that such a move could have for global players and the gaming industry, heralding a new chapter for gaming and tech giants alike.
