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| Microsoft boss: Activision Blizzard deal block is bad for Britain | Microsoft boss: Activision Blizzard deal block is bad for Britain |
| (about 7 hours later) | |
| Activision Blizzard makes hit games like Call of Duty, World of Warcraft and Candy Crush | Activision Blizzard makes hit games like Call of Duty, World of Warcraft and Candy Crush |
| One of Microsoft's senior leaders has hit out after the software giant's deal to buy US video game company Activision Blizzard was blocked by UK regulators. | One of Microsoft's senior leaders has hit out after the software giant's deal to buy US video game company Activision Blizzard was blocked by UK regulators. |
| The move was "bad for Britain" and showed that the European Union was a better place to set up a firm than the UK, Brad Smith told the BBC. | The move was "bad for Britain" and showed that the European Union was a better place to set up a firm than the UK, Brad Smith told the BBC. |
| But the Competition and Markets Authority (CMA) said its job was not to serve the interests of merging firms. | But the Competition and Markets Authority (CMA) said its job was not to serve the interests of merging firms. |
| The CMA added that its decision would encourage growth. | The CMA added that its decision would encourage growth. |
| The proposed $68.7bn (£55bn) takeover would see Microsoft get hold of massively popular games titles such as Call of Duty, Candy Crush, and World of Warcraft. | The proposed $68.7bn (£55bn) takeover would see Microsoft get hold of massively popular games titles such as Call of Duty, Candy Crush, and World of Warcraft. |
| But on Wednesday the regulator said it was concerned the deal would hit innovation and give gamers less choice in the fast-growing cloud gaming market, where people buy subscriptions to access games online. | But on Wednesday the regulator said it was concerned the deal would hit innovation and give gamers less choice in the fast-growing cloud gaming market, where people buy subscriptions to access games online. |
| Microsoft has already said the decision may have an impact on its UK investment. | Microsoft has already said the decision may have an impact on its UK investment. |
| In an interview with the BBC Radio 4 Today programme, Mr Smith, who is Microsoft's vice chair and president, said the company was "very disappointed" about the CMA's decision, "but more than that, unfortunately, I think it's bad for Britain." | In an interview with the BBC Radio 4 Today programme, Mr Smith, who is Microsoft's vice chair and president, said the company was "very disappointed" about the CMA's decision, "but more than that, unfortunately, I think it's bad for Britain." |
| "There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom." | "There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom." |
| The UK government has made it one of its post-Brexit goals to bring in a "light-touch" set of rules for science and technology to encourage economic growth. | The UK government has made it one of its post-Brexit goals to bring in a "light-touch" set of rules for science and technology to encourage economic growth. |
| Mr Smith said that if the UK wants to bring in investment and make Britain a place "where technology is not only going to flourish, but be created", then "it needs to look hard at the role of the CMA and the regulatory structure". | Mr Smith said that if the UK wants to bring in investment and make Britain a place "where technology is not only going to flourish, but be created", then "it needs to look hard at the role of the CMA and the regulatory structure". |
| He added that "people are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken" by the CMA decision. | He added that "people are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken" by the CMA decision. |
| UK interests | UK interests |
| However, the regulator hit back, saying: "It is the CMA's job to do what is best for the people, businesses and economy of the UK, not merging firms with commercial interests." | However, the regulator hit back, saying: "It is the CMA's job to do what is best for the people, businesses and economy of the UK, not merging firms with commercial interests." |
| It added that its decision means that a range of firms, "large and small", can "continue to compete in this rapidly growing market". | It added that its decision means that a range of firms, "large and small", can "continue to compete in this rapidly growing market". |
| This will mean more innovation, and more choice for consumers, it said. | This will mean more innovation, and more choice for consumers, it said. |
| "Those are the best conditions to attract investment and support growth," the regulator added. | "Those are the best conditions to attract investment and support growth," the regulator added. |
| Microsoft and Activision have said they would appeal the CMA's decision. | Microsoft and Activision have said they would appeal the CMA's decision. |
| The Call of Duty titles have sold more than 400 million copies over the past 20 years | The Call of Duty titles have sold more than 400 million copies over the past 20 years |
| For the deal to work, it has to be approved by regulators in the UK, the US and the EU. | For the deal to work, it has to be approved by regulators in the UK, the US and the EU. |
| But it has fallen at the first hurdle. The CMA's decision may scupper the whole takeover. | But it has fallen at the first hurdle. The CMA's decision may scupper the whole takeover. |
| Cloud gaming | Cloud gaming |
| This deal is important for Microsoft because it wants to make its position in the fast-growing cloud gaming market stronger. | This deal is important for Microsoft because it wants to make its position in the fast-growing cloud gaming market stronger. |
| Rather than buying games consoles, then games to play on them, cloud gaming means fans can stream titles via the internet rather than owning physical copies. | Rather than buying games consoles, then games to play on them, cloud gaming means fans can stream titles via the internet rather than owning physical copies. |
| Microsoft has already invested a lot in this space, as it sees the future of gaming as people playing on their phones, consoles, internet TVs and other devices. | Microsoft has already invested a lot in this space, as it sees the future of gaming as people playing on their phones, consoles, internet TVs and other devices. |
| The deal would also give it some very popular games titles to be able to compete more with the likes of Sony, which has consistently opposed it. | The deal would also give it some very popular games titles to be able to compete more with the likes of Sony, which has consistently opposed it. |
| Sony's position is that its PlayStation would have restricted access to some of the world's most popular titles, which would be bad for gamers. | Sony's position is that its PlayStation would have restricted access to some of the world's most popular titles, which would be bad for gamers. |
| Listen to the BBC's interview with Brad Smith on the Wake up to Money podcast | |
| Related Topics | Related Topics |
| Gaming | Gaming |
| Companies | Companies |
| Microsoft | Microsoft |
| Activision Blizzard | Activision Blizzard |