Microsoft appeals CMA ruling on Activision Blizzard acquisition

Microsoft's proposed acquisition of Activision Blizzard is in an interesting position right now. The company was able win over competing cloud companies and the European Commission with its commitments to bring Activision Blizzard and Xbox first-party PC games to rival cloud gaming services. However, in the UK, the CMA has chosen to block the deal. Now as planned, Microsoft has filed its appeal, laying out its arguments against the CMA's decision. 

The appeal was filed this week with the Competition Appeal Tribunal (CAT), and now, a summary of Microsoft's argument for the appeal has been published by CAT ahead of the first meeting between Microsoft, the CMA and the Tribunal, which is scheduled for next week.

In the appeal, Microsoft claims the CMA made “fundamental errors” in its assessment, including wrongly defining the cloud gaming market as a separate entity to the overall gaming market. Microsoft's appeal also claims that beyond market definition issues, the CMA made “irrational” conclusions, such as claiming that Activision would put its games on cloud services, something the company has shown little to no interest in prior to the merger agreement with Microsoft. Elsewhere in the appeal, it is also claimed that the CMA made wrongful calculations in its assessment of Microsoft's position in the cloud gaming market. You can read the full summary document, HERE.

In a statement sent to The Verge, a Microsoft spokesperson said that it is “confident in the strength” of the appeal, as well as “the binding commitments” made to bring its games and Activision Blizzard titles to competing cloud services, which will “increase competition and choice for players today and in the future”.

KitGuru Says: This appeal seems to be moving quickly but it will be a while before a final decision is made. Now we'll have to wait and see how things play out. 

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