Microsoft's Bid to Acquire Activision Blizzard for $69 Billion Blocked by UK Watchdog: Gaming Industry Disrupted

Author: Deborah Ross  /  2023-04-26 15:10:10

Microsoft's proposed $69 billion acquisition of video game publisher Activision Blizzard has been blocked by the UK's Competition and Markets Authority (CMA) on the grounds that it would harm competition in the gaming industry. The CMA's decision is a significant blow to Microsoft, which had hoped to leverage Activision's portfolio of popular franchises like Call of Duty and World of Warcraft to bolster its position in the highly competitive gaming market.

The CMA's investigation found that the deal would give Microsoft too much control over the supply of video games and could lead to higher prices for consumers. The watchdog also expressed concerns that the acquisition would reduce the quality and quantity of games available on rival platforms, which would harm competition and innovation in the industry.


The decision marks a rare instance of a major tech deal being blocked by a government watchdog. It also highlights the growing scrutiny that big tech companies are facing as they seek to expand into new markets and acquire smaller rivals.

Microsoft has expressed disappointment at the decision and said it is considering its options, including a possible appeal. Activision Blizzard has not commented on the matter.

The CMA's decision is likely to have implications beyond the gaming industry, as other tech giants such as Apple, Amazon, and Google face increasing regulatory scrutiny over their acquisition strategies. It remains to be seen whether Microsoft will be able to salvage the deal or if it will have to look elsewhere for growth opportunities in the gaming market.

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