Microsoft President Seeks Solutions for British Approval of Activision Blizzard Acquisition
The president of Microsoft, Brad Smith, recently expressed his determination to find solutions that could lead to British approval of the software giant’s proposed acquisition of gaming behemoth Activision Blizzard. The £69 billion deal was blocked by British competition authorities in April, prompting Microsoft to appeal the decision. Smith’s remarks came during the techUK Tech Policy Leadership conference in London, where he highlighted the company’s commitment to addressing regulatory concerns and finding ways to fulfill any additional requirements imposed by the UK.
Seeking Solutions and Addressing Concerns:
During the conference, Smith acknowledged the need to address the concerns of regulators and resolve any problems that have arisen in the acquisition process. Microsoft’s aim is to overcome the obstacles faced in gaining approval from British competition authorities. Smith emphasized the company’s willingness to go beyond the requirements set by the European Union, demonstrating their commitment to fulfilling any additional regulatory obligations imposed by the UK.
Appeals and Challenges:
In addition to the appeal against the British competition authorities’ decision, Microsoft has also challenged the US Federal Trade Commission’s actions seeking to block the acquisition. The company argues that the deal would not suppress competition as claimed by the agency. Despite these challenges, Microsoft received approval from the EU’s competition authorities in May after offering remedies that were broadly comparable to those proposed in the UK.
Disputing the CMA’s Conclusion:
Microsoft recently filed an appeal with the Competition Appeal Tribunal (CAT) against the British Competition and Markets Authority (CMA)’s decision to block the acquisition. The company believes that the CMA’s conclusion, which stated that the deal would result in a substantial lessening of competition in the UK’s cloud gaming market, was based on “fundamental errors” in assessing Microsoft’s cloud gaming services. By challenging the CMA’s ruling, Microsoft aims to demonstrate that the decision was flawed and that the deal would not have the negative impact suggested.
Overcoming Legal Obstacles:
Microsoft’s pursuit of the Activision Blizzard acquisition encountered a potential legal obstacle when a US judge refused to preliminarily block the acquisition in response to a private lawsuit filed by gamers. This development allows Microsoft to proceed with its plans while legal proceedings continue. The company remains focused on resolving regulatory concerns and securing the necessary approvals to move forward with the deal.
Conclusion:
Microsoft President Brad Smith’s determination to find solutions and overcome regulatory hurdles demonstrates the company’s commitment to acquiring Activision Blizzard. With appeals filed against both British and US competition authorities, Microsoft is determined to address concerns and demonstrate that the acquisition will not suppress competition. By pursuing approval in the UK and striving to fulfill any additional requirements, Microsoft aims to solidify its position as a leader in the tech industry while bolstering confidence in the UK as a destination for tech businesses.
