Microsoft Sets Out Grounds For Activision Appeal Against UK Regulator: All Details

Microsoft is challenging Britain’s decision to block a $69 billion takeover of “Call of Duty” maker Activision Blizzard based on “fundamental errors” in the valuation of Microsoft’s cloud gaming services.

Britain’s anti-trust regulator, the Competition and Markets Authority (CMA), vetoed the deal in April, saying it could harm competition in the nascent cloud gaming market, sparking an angry row.

Microsoft confirmed on Wednesday that it had lodged an appeal against the ruling with Britain’s Competition Appeal Tribunal (CAT) and published a summary of its arguments on Friday.

It said the CMA’s conclusion that the deal would lead to a significant lessening of competition in the United Kingdom’s cloud gaming market was, in summary, incorrect.

The CMA “made fundamental errors in its calculation and evaluation of market share data for native gaming services and failed to take into account barriers to native gaming (so that gamers access games installed on their devices via digital downloads or physical discs)”, Microsoft will says the Competition Appellate Tribunal.

Setting out a total of five grounds for appeal, he also said he would challenge the CMA’s understanding of the cloud gaming market and the impact of the deal.

Appeals against the CMA’s rulings are heard by the Competition Appeal Tribunal, which rules on the merits of the decision, and is not an opportunity for Microsoft to submit new remedies.

The European Union’s competition authorities approved the deal earlier this month because they accepted measures put forward by Microsoft that were broadly comparable to those proposed in the UK.

Microsoft has also appealed the US Federal Trade Commission’s action seeking to block the deal on the grounds, the agency said, that it would stifle competition.

The CMA reiterated its position on Friday, with a spokesman saying: “We blocked the deal because we were concerned it would reduce innovation and choice in the cloud gaming market in the UK. We will defend our position in court.

(This story has not been edited by News 18 staff and is published from a syndicated news agency feed – Reuters)