Activision Blizzard

Microsoft (NASDAQ: MSFT) Challenges UK’s Block on $69B Activision Blizzard Acquisition

Microsoft Corporation (MSFT) has officially filed an appeal against Britain’s decision to block its $69 billion acquisition of Activision Blizzard, Inc. (NASDAQ: ATVI), the developer of “Call of Duty.” A Microsoft spokesperson confirmed the appeal, highlighting the company’s commitment to the takeover.

The Competition and Markets Authority (CMA), Britain’s antitrust regulator, said no to the deal in April. They were worried that if Microsoft took over, it could harm competition in the new cloud gaming market.

On Wednesday, Microsoft submitted an appeal to the Competition Appeal Tribunal (CAT) regarding the CMA decision. The CAT spokesperson declined to comment on the matter.

Microsoft’s communications director, Robin Koch, confirmed the filing of the appeal, stating, “We can confirm we have filed our appeal.”

The CMA’s decision to stop the huge gaming deal has made both Microsoft and Activision Blizzard very angry. Microsoft expressed its unhappiness and pointed out that it could negatively affect the confidence of tech companies considering investing in the UK.

Interestingly, the European Union’s competition authorities took a different stance on the acquisition, approving it earlier this month. Microsoft provided solutions to address competition concerns, which the EU considered to be similar to the ones proposed in the UK.

In addition, Microsoft has decided to challenge the United States Federal Trade Commission (FTC) because they tried to stop the acquisition. The FTC is worried that the acquisition will harm competition.

The CAT’s primary role in this appeal process is to assess the merits of the CMA’s decision. It should be clarified that this appeal does not provide an opportunity for Microsoft to present new remedies or proposals.

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