Last year, Microsoft boss Brad Smith criticized the UK following the initial rejection of the tech giant’s proposed acquisition of Activision Blizzard by the competition watchdog.
The UK’s Competition and Markets Authority (CMA) initially blocked the takeover over concerns about its potential impact on innovation and consumer choice in cloud gaming.
However, after the CMA later approved the deal, Smith altered his stance, acknowledging the watchdog’s toughness and fairness.
Smith explained that the CMA’s intervention prompted Microsoft to modify its proposed acquisition. They agreed to spin out certain cloud gaming rights concerning Activision Blizzard, addressing the CMA’s concerns.
The rejection had initially led Smith to suggest that the European Union became a more appealing place for business. This decision was a setback for the UK government’s ambition to establish itself as a tech powerhouse.
In October, after Microsoft restructured its offer, the CMA greenlit the deal. Smith commended the CMA for maintaining its position while paving the way for innovation and investment, deeming it beneficial for everyone.
However, the competition watchdog’s boss, Sarah Cardell, criticized Microsoft for its approach during the proceedings, stating that their tactics were not conducive to engaging with the CMA.
Microsoft’s plan to acquire Activision Blizzard, announced in January last year, faced resistance from regulators worldwide. The tech giant submitted a revamped deal for the CMA’s review in August 2023, agreeing to transfer streaming rights of Activision games to Ubisoft for 15 years.
This move ensured that gamers using consoles other than Microsoft’s Xbox could still access popular games like Call of Duty via cloud streaming.
During an interview with the BBC, Smith also highlighted Microsoft’s commitment to invest £2.5 billion in AI infrastructure in the UK over the next three years.
He praised the UK government’s substantial investment of £900 million for the country’s researchers, labeling it a significant move.
