Brits Want to Make Sure Microsoft Doesn't Get Activision
Britain's Competition and Markets Authority has issued a regulation on Microsoft's acquisition of Activision Blizzard. The agency wants to make sure the companies don't try to force the deal.
The UK's Competition and Markets Authority (CMA) has imposed further restrictions on Microsoft and Activision after having blocked the high-profile acquisition. The agency has issued an order (via GamesIndustry.biz), in which it prohibits the two companies from buying each other's stocks.
The CMA's decision on the biggest (and certainly most expensive) acquisition in the gaming industry came as an unpleasant surprise to Microsoft. Back in April, Sony accused CMA of favoring the purchase of a rival, describing their attitude as "irrational."
Meanwhile, not only did the agency ultimately not endorse Microsoft's purchase of Activision, but it is also making efforts to block the deal. Yesterday's order states that both companies must obtain written permission if they want to acquire shares of companies owned by the other. It also takes into account "investments in mutual development studies."
The CMA justifies the decision on the grounds that it wants to prevent "pre-emptive action" by Microsoft and Activision that could put the agency before a fait accompli. In other words, the Brits want to make sure that the Redmond giant doesn't try to circumvent the deal blockade.
The order also confirms that the CMA is determined not to let Activision be taken over and is unlikely to make any concessions. This puts Microsoft in an uncomfortable position, but the company has not yet given up.
