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ARTICLE · 17 MAY 2023

UK Competition Regulator Stops Microsoft's Cloud Gaming Acquisition

Herrington Carmichael LLP
Herrington Carmichael LLP
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Herrington Carmichael LLP

Herrington Carmichael LLP

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Microsoft is a name that comes to everyone's mind when we think of computer software. Microsoft also has an estimated market share of 60-70% in global cloud gaming services.

United KingdomMedia, Telecoms, IT, Entertainment
Mark Chapman
Mark Chapman
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Microsoft is a name that comes to everyone's mind when we think of computer software. Microsoft also has an estimated market share of 60-70% in global cloud gaming services. While Microsoft has been celebrating its impressive market position, it has met with a stumbling block from the UK competition regulator, the Competition and Markets Authority ("CMA"). The CMA has blocked Microsoft's planned $68.7bn acquisition of Activision Blizzard amid concerns over reduced innovation within the cloud gaming industry.

While both Activision and Microsoft are disappointed with the CMA's decision, stating that it contradicts the UK's desire to build its technology sector, the CMA considered that cloud gaming is still at an early stage of development and that this acquisition could hamper competition in the cloud gaming business.

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