Microsoft ready to close Activision purchase without UK; Xbox can take publishers overseas and operate with distributors

Microsoft is ready to take the Activision lawsuit to the next level in the UK. According to unconfirmed reports from BloombergBrad Smith, president of the computer giant, will meet with the UK Chancellor of the Exchequer Jeremy Hunt “vent your frustration about CMA blocking”, explain financial tabloids. Likewise, the Xbox manufacturer will meet with the regulatory authorities mentioned above to find a solution, but it also carries a kind of warning: accept it or get Activision out of the UK and cooperate with distributors.

This move makes sense, as Microsoft and Activision have until July 18 to finalize the deal or a renegotiation is needed and even risks one side dropping the matter entirely. . The UK court of appeals has set a hearing between Microsoft and CMA for July 24th, so perhaps Redmond wants to apply pressure or, again, close the deal without CMA approval and what happened what had to happen. The same will be true in the United States, where the FTC is trying to block the monumental transaction, and is testing it until August.

He Finance Minister Jeremy Huntis the champion of British business and growth, and indeed, in May sent a message to the CMA, asking it to understand the need to promote the country’s development. It should be noted that, despite being a decentralized body, the head of the CMA is appointed by the government and is not protected from being replaced if it does not meet expectations.

Florian Mueller, regulatory expert, said of this encounter:

At the very least, UK heads of government will gain a better understanding of why the CMA’s decision on ABK does not constitute proper competition law enforcement and good policy. In an ideal scenario, the CMA would come up with a constructive proposal to solve their problem -valid or not-, without spoiling the whole thing. The recovery package that the CMA accepted was preferable to an appeals court ruling (…) The CMA was unable to prevent the closing of the deal. It will pass one way or another. A solution that relies on court rulings or unilateral action is preferable to no solution to a problem CMA created, but a successful solution between CMA and Microsoft has the potential to be so much better – for gamers and gamers alike. British player- of anything.

What was missing from the Xbox to buy Activision

Nearly every country has antitrust authorities and, although according to expert in the field, Florian Mueller, 37 countries have given the green light to the agreement (38 with South Korea), the 4 most important and indispensable competitive commissions are United States FTCThat UK CMA, European Union EC and China CNAMA. Of the 4, two were against and two were in favor.


The FTC is going to take Microsoft to court Augustwhile CMA blocks purchases and, now, MSFT and Activision will appeal, but according to Seeking Alpha, it may be enough for one of the 2 opposing authorities to survive to pull the merger outright.

While China and Europe are important, Britain’s antitrust regulator’s decision to block the deal last month is seen as a major hurdle that could eventually lead to its cancellation.

Faced both rejections, one lock date That will be on July 18, when Microsoft and Activision will meet to renegotiate the terms of the merger or, failing that, to pull out, after paying a fine.

Roderick Gilbert

"Entrepreneur. Internet fanatic. Certified zombie scholar. Friendly troublemaker. Bacon expert."

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