CMA has blocked Microsoft's acquisition of Activision Blizzard.

 

Due to "fundamental errors" in evaluating Microsoft's cloud gaming services, UK’s decision to block Microsoft's $69 billion acquisition of "Call of Duty" creator Activision Blizzard is being appealed by Microsoft.

 

UK’s anti-trust watchdog, the Competition and Markets Authority (CMA) rejected the deal in April, claiming it could harm competition in the budding cloud gaming market. This sparked a raging argument.

 

Microsoft announced on Wednesday that it had appealed the decision to UK’s Competition Appeal Tribunal (CAT), and on Friday, a summary of its arguments was made public.

The summary declared that the CMA's assessment that the deal would significantly reduce competition in the UK.'s cloud gaming market was incorrect.

 

Microsoft will make this claim in front of the Competition Appeal Tribunal, claiming that the CMA "made fundamental errors in its calculation and assessment of market share data for cloud gaming services by failing to take account of constraints from native gaming" (where players access games already installed on their devices through a digital download or physical disc).

 

It also stated that it would contest the CMA's comprehension of the cloud gaming market and the deal's significance, outlining five grounds for appeal.

 

Microsoft Corporate Vice President and Deputy General Counsel Rima Alaily argued that the CMA's decision was "flawed for a number of reasons, including its overestimation of the role of cloud streaming in the gaming market and our position in it, as well as its refusal to consider solutions that received overwhelmingly positive industry and public support."

 

We have made legally binding commitments to increase competition and choice for players now and in the future, and we are confident in the strength of those commitments.

 

The Competition Appeals Tribunal hears appeals against CMA decisions and renders a decision on the decision's merits; Microsoft is not allowed to offer new remedies during this hearing.

 

The E.U.'s competition authorities approved the deal earlier this month after they agreed to Microsoft's proposed remedies, which were broadly similar to those it put forth in the UK.

 

Microsoft has also appealed the U.S. Federal Trade Commission's decision to halt the transaction because it would stifle competition.

 

On Friday, the CMA reaffirmed its stance, according to a spokesperson: "We disallowed this transaction because we were worried that it would limit options and innovation in the UK market for cloud gaming. In court, we'll argue for our position."