The news: The UK’s Competition and Markets Authority (CMA) is blocking Microsoft’s blockbuster $68.7 billion acquisition of gaming giant Activision Blizzard.
Zooming in: 40% of 300 game developers surveyed said cloud gaming will grow the most of any gaming platform by 2025, according to Perforce Software. Twenty-four percent said mobile will grow the most.
What’s next: Microsoft and Activision Blizzard said they would appeal to the UK Competition Appeals Tribunal. They argued that the CMA misunderstood the market and the technology involved in cloud gaming.
Our take: Microsoft’s challenge of the decision might not succeed against the antitrust watchdog, and other regulators could follow suit.
The latter will be particularly challenging since the FTC under chair Lina Khan seems to have made Microsoft and this particular acquisition a primary target for its first big antitrust win
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