UK Regulators Block Microsoft's $69 Billion Acquisition of Activision Blizzard Over Cloud Gaming Concerns

Microsoft's desperate attempt to acquire "Call of Duty", "Overwatch", and "World of Warcraft", video game maker Activision Blizzard for $68.7 billion (£55bn) has ended up in vain after the British anti-trust regulators intervened and blocked the deal amidst concern about the far reaching negative impact that it would have upon a fair and healthy competition within the cloud gaming market.

This acquisition, solely in cash, would have been the most expensive ever made by a US tech company, setting a new record in terms of the amount paid.

The decision to terminate the said acquisition was made as part of an elaborate investigation by the Competition and Markets Authority (CMA) over several months.Based on their findings they concluded that the deal would create a lop-sided competition in favour of Microsoft in the cloud gaming industry.

The CMA stated that had the acquisition actually sailed through successfully it would immediately create a kind of monopoly within the market causing prices to shoot up beyond the reach of the common man. Ultimately it will be the consumers especially those living in UK who would suffer the most and they would be helplessly left with few choices to make on a tight budget.

This in turn, according to the British experts in this field, would lead to dismal reduction in innovation in the cloud gaming market and consumers will have to remain satisfied with whatever is made avialable to them with very few variety to choose from.

Cloud gaming offers UK gamers an alternative to purchasing costly gaming consoles and computers. This approach provides them with greater flexibility and a wider range of options in terms of how they choose to play their games.

However both companies say they have not given up yet and remains optimistic about sealing the deal.

Microsoft's Vice Chair and President, Brad Smith, has stated that the company intends to challenge the decision made by the British regulators, regarding the acquisition of Activision Blizzard. Despite the ruling, Smith emphasized that Microsoft remains dedicated to the acquisition. He also criticized the Competition and Markets Authority, claiming that their decision was based on an inaccurate understanding of the gaming and cloud markets.

Activision, on the other hand, has expressed its intention to challenge the ruling and warned that it might scale back its investments in the UK. The company also criticized the Competition and Markets Authority, claiming that its decision runs counter to the UK's efforts to encourage the growth of technology-based businesses in the country.