Proactive Investors - The CMA’s decision to nix Microsoft Corporation's (NASDAQ:MSFT) US$70bn Activision Blizzard Inc (NASDAQ:ATVI) takeover was met with stunning vitriol from Microsoft president Brad Smith today, who condemned the decision as a hex on Britain’s post-Brexit appeal.
“We’re of course very disappointed about the CMA’s decision, but it’s more than that. Unfortunately I think it’s bad for Britain,” Smith told BBC Radio 4.
In the “probably the darkest day” in Microsoft’s 40-year history, the CMA’s decision to block the takeover of the Call of Duty and World of Warcraft publisher would “shake the confidence among the business community in the UK”, Smith warned.
He said: "People are shocked, people are disappointed and people’s confidence in technology in the United Kingdom has been severely shaken."
“For all of us who had some hope that, post-Brexit, the UK would construct a structure that would even be more flexible, that would be better for investment, better for technology, we’re now finding the opposite appears to be true.”
The “English Channel has never been wider,” said Smith, warning that the momentous decision could push businesses over the European Union to conduct business.
But the CMA was steadfast in its decision to clock Microsoft from taking control of CoD, WoW and Candy Crush Saga, three of the biggest global titles in the video game sector.
Sarah Cardell, chief executive of the CMA, called it a victory for UK gamers and businesses.
“What our independent decision group found after a long and careful investigation was that combining those two businesses would really reinforce Microsoft’s strong position in cloud gaming. That would be problematic because it would really harm the ability of other platforms to compete effectively,” said Cardell.
Call of Duty: Modern Warfare 3 sold over 30 million copies – Source: gamerant.com
Sony (TYO:6758) strongly opposes the deal, alleging that Microsoft would shut the PlayStation developer out of the hugely lucrative Call of Duty shooter franchise.
Call of Duty titles, which are often released on a yearly basis, regularly rake in ten of millions of unit sales and are played by PlayStation, Xbox and PC gamers across the globe.
Without access to the AAA franchise, Sony worries that it could severely impact PlayStation sales.
Smith’s dress down of the CMA’s decision comes at a time when the UK is struggling to retain tech talent, and comes at odds with the Sunak administration’s ambition to make Britain “the world’s next Silicon Valley”.