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Microsoft appeals against UK block on Activision Blizzard deal

Published 05/24/2023, 12:29 PM
Updated 05/24/2023, 05:32 PM
© Reuters. FILE PHOTO: Smartphone is seen in front of Microsoft logo displayed in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
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LONDON (Reuters) -Microsoft filed an appeal on Wednesday of Britain's decision to block its $69 billion takeover of "Call of Duty" maker Activision Blizzard (NASDAQ:ATVI), a company spokesperson said.

The Competition and Markets Authority (CMA), Britain's antitrust regulator, vetoed the deal in April, saying it could hurt competition in the nascent cloud gaming market.

Microsoft (NASDAQ:MSFT) lodged its promised appeal with the Competition Appeal Tribunal (CAT), which handles appeals against CMA rulings, on Wednesday, the deadline for it to file. A spokesperson for the CAT declined to comment

"We can confirm we have filed our appeal," Microsoft communications director Robin Koch said.

The CMA's shock decision to block the biggest ever deal in gaming drew a furious response from both companies, with Microsoft saying it had shaken confidence in Britain as a destination for tech businesses.

The EU's competition authorities approved the deal earlier this month after they accepted remedies put forward by Microsoft that were broadly comparable to those it proposed in the UK.

© Reuters. FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard's games characters in this illustration taken January 18, 2022. REUTERS/Dado Ruvic

Microsoft has also appealed the U.S. Federal Trade Commission's action seeking to block the deal on the grounds that, the agency said, it would suppress competition.

The CAT makes a judgment on the merits of the CMA decision. The appeal is not an opportunity for Microsoft to submit new remedies.

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