@kvallyx said:
Looks like the CMA is getting it even worse :(. This is essentially a massive beatdown to them. I wonder if they might consider disbanding the CMA all together after this failure from them. No wonder the acquisition is going through.
HUGE: One of the 2-3 most powerful members of the UK government issues a clear warning to @CMAgovUK concerning its attempt to block #Microsoft's purchase of#ActivisionBlizzard.
"One of the reasons that companies like Microsoft ... invest in the UK is because we have independent regulators ... I would not want to undermine that at all, but I do think it's important all our regulators understand their wider responsibilities for economic growth." He said so at a conference today, Reuters reports. UK regulators must understand need to promote growth, Hunt says. That is consistent with Prime Minister's LinkedIn post and strategic steer document on Friday, saying CMA must also consider investment and growth about the possibilities that the UK government has to rein in the#CMA, and about the CMA's need to regain the trust of politicians. The CMA must act constructively now and resolve the situation. It has unnecessarily created this situation by making a completely irrational decision.
The deal has already been cleared in 37 countries with more than 950 million inhabitants (more than 14 times the UK's population size) and an aggregate GDP of $24.5 trillion, almost eight times that of the UK. The CMA does not compete with the, but the UK does compete with the EU and other economies for investment and job creation. The CMA makes arbitrary decisions against the law and against the facts. Legal uncertainty is bad for business.
The heads of the UK’s competition regulator have insisted that they are not creating a “hostile” environment for tech companies after the agency was criticised for blocking Microsoft’s $75bn takeover of Activision Blizzard.
Answering questions from UK members of parliament on Tuesday, Marcus Bokkerink, chair of the Competition and Markets Authority, and its chief executive Sarah Cardell defended its stance on the video games industry’s largest deal, despite the European Commission accepting commitments from Microsoft and approving the tie-up on Monday.
“I think it’s absolutely critical that we maintain a constructive dialogue [with the tech industry] and that’s something that I seek to do and I’m doing regularly,” said Cardell, “so I don’t find that we are operating, sort of broadly speaking, in a hostile environment.”
Cardell added she had told tech companies in preparatory meetings ahead of the creation of a new digital markets unit, run by the CMA: “This is a sector where we want to work together.”
After executives at Microsoft and Activision suggested the CMA’s decision threatened to damage the UK’s profile among overseas businesses, Conservative MP Bim Afolami challenged the regulator’s top executives over how its decisions took account of Britain’s “international reputation”.
“I will challenge the premise that there is an impact on international confidence in doing business in the UK, that the best way that confidence is served is by turning a blind eye to anti-competitive mergers,” said Bokkerink. “We are vigilant . . . about investments that consolidate and entrench market power.”
In response to the CMA and EU’s contrasting decisions, Activision chief Bobby Kotick has said that “the UK is clearly closed for business” while saying his company would “meaningfully expand our investment and workforce throughout the EU”.
Cardell told MPs that officials at the CMA and in Brussels agreed about the potential harms of the Activision deal in the cloud gaming market but differed in their acceptance of Microsoft’s proposed remedies.
While the EU said that Microsoft had agreed to allow buyers of Activision’s games to stream them on rival cloud gaming platforms for up to 10 years, Cardell said that after “very carefully” considering “several iterations” of that proposal, CMA officials “ultimately concluded that remedy would not be effective to resolve the competition concerns”.
She also denied accusations levelled by Kotick that the CMA was acting as a “tool” of US antitrust enforcers, who have also opposed the deal.
“We are absolutely not doing the bidding of other agencies. We undertake our own analysis,” she said.
MS can kiss CMA's ass goodbye. FOR GOOD
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