Microsoft has decided to appeal the UK competition authority’s decision to block the $69 billion deal between Microsoft and Activision Blizzard. This decision comes as the deadline for filing an appeal was approaching.
The decision of the CMA: one of the last blocking links in the takeover
Microsoft filed the appeal with the Competition Appeal Tribunal on Wednesday, according to a company spokesperson. This approach aims to challenge the decision of the British Competition and Markets Authority (CMA).
While the European Union cleared the massive deal, the UK competition authority maintained its decision to block the deal, saying it would give Microsoft excessive control over the games market for a decade. This decision was described as shocking by some observers.
Judicial review of the appeal is expected to begin and could take up to nine months. Generally, Competition Appeal Tribunal cases are heard by three judges, one of whom is an expert in the relevant field.
The Microsoft spokesperson merely confirmed the filing of the complaint, without making additional comments. “We can confirm that we have filed our appeal,” said Robin Koch, Microsoft communications director. For its part, Activision did not immediately respond to a request for comment.
Along with this, Microsoft also has to deal with the US Federal Trade Commission (FTC) regarding this transaction. Indeed, the FTC filed a lawsuit to block the deal. The trial is expected to begin in early August, but a final decision is not expected before the end of the year.
The legal battle promises to be an arduous one for Microsoft, as the appeals court can only examine the legality of the decision-making process rather than the facts on which it was based. If the Competition Appeal Tribunal decides that there has been an error in judgment, it will refer the case to the CMA itself. However, it should be noted that the CMA has never reversed a decision in a case referred from the appellate court.
The CMA blocked this merger due to Microsoft’s strengthening of its dominant position in the cloud gaming market, with control of globally popular franchises such as Call of Duty, Overwatch and World of Warcraft. The regulator also noted that without this merger, Activision would have the ability to provide games on different cloud gaming platforms in the future.
