NYT TECHNOLOGY: U.K. Blocks Microsoft’s $69 Billion Bid for Activision, a Blow for Tech Deals
By David McCabe and Kellen Browning
Section: Technology
Source: New York Times
Published Date: April 26, 2023 at 03:00AM
With its ruling, Britain’s Competition and Markets Authority inflicted a possibly fatal blow to what would be the largest consumer tech acquisition since AOL bought Time Warner two decades ago. The agency said Microsoft’s proposals to ensure that the acquisition would not harm competition “failed to effectively address the concerns in the cloud gaming sector,” a nascent part of the gaming industry.
The surprising ruling bolstered an effort by the Federal Trade Commission to block the deal in the United States and was a clear victory for proponents of regulating tech giants like Microsoft, Amazon, Apple, Google and Meta, Facebook’s parent company. Their efforts, fueled by fears that the companies wield too much power over online commerce and communications, have been stymied by recent court losses and legislative failures.
“This is a very big win for the broader effort to realign antitrust enforcement,” said William E. Kovacic, a former chairman of the F.T.C. Microsoft said it planned to appeal the ruling.
By David McCabe and Kellen Browning
Section: Technology
Source: New York Times
Published Date: April 26, 2023 at 03:00AM
The decision barring the takeover of a big video game publisher is a major victory for proponents of regulating tech giants, which have faced obstacles in the United States.
British antitrust regulators dealt a major setback on Wednesday to Microsoft’s plans to acquire the video game giant Activision Blizzard for $69 billion, blocking the proposed deal and handing a notable win to government enforcers around the world who want to rein in Big Tech.With its ruling, Britain’s Competition and Markets Authority inflicted a possibly fatal blow to what would be the largest consumer tech acquisition since AOL bought Time Warner two decades ago. The agency said Microsoft’s proposals to ensure that the acquisition would not harm competition “failed to effectively address the concerns in the cloud gaming sector,” a nascent part of the gaming industry.
The surprising ruling bolstered an effort by the Federal Trade Commission to block the deal in the United States and was a clear victory for proponents of regulating tech giants like Microsoft, Amazon, Apple, Google and Meta, Facebook’s parent company. Their efforts, fueled by fears that the companies wield too much power over online commerce and communications, have been stymied by recent court losses and legislative failures.
“This is a very big win for the broader effort to realign antitrust enforcement,” said William E. Kovacic, a former chairman of the F.T.C. Microsoft said it planned to appeal the ruling.
Read More at: https://www.nytimes.com/2023/04/26/technology/microsoft-activision-uk.html
UK Blocks Microsoft's $69 Billion Deal for Activision , Microsoft Corp.'s $69 billion takeover of Activision Blizzard Inc. was vetoed by Britain's antitrust watchdog, in a potentially fatal blow for the gaming industry's biggest ever deal. Jennifer Rie of Bloomberg Intelligence and Bloomberg's Ed Ludlow discuss.
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