The UK CMA and the EU don't see eye to eye on Microsoft's cloud gaming concessions

Earlier today, the European Commission, the regulatory body of the European Union, approved Microsoft's plan to acquire game developer Activision Blizzard. The EC did voice concerns that Microsoft might try to dominate the cloud gaming industry by making Activision Blizzard's games exclusive to its Xbox cloud gaming service.

However, it ultimately decided to accept Microsoft's concession that all of Activision Blizzard's current and future games would be available to stream on all EU cloud gaming services. After the EC's decision, Microsoft President Brad Smith issued a comment saying this concession would be applied "globally".

However, it appears that the UK's Competition and Markets Authority, which blocked Microsoft's purchase of Activision Blizzard in late April, doesn't think Microsoft's proposal is enough. the UK CMA posted a multi-thread rebuttal to the EC's decision on Twitter. Here it is in full:

Our response to the European Commission's announcement today on Microsoft/Activision

The UK, US and European competition authorities are unanimous that this merger would harm competition in cloud gaming. The CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector. Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next 10 years.

They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale. This is one of the reasons the CMA’s independent panel group rejected Microsoft’s proposals and prevented this deal. While we recognise and respect that the European Commission is entitled to take a different view, the CMA stands by its decision.

Microsoft plans to appeal the UK CMA's decision, which could take months or longer. Smith previously said in a BBC interview that the CMS's viewpoint was "bad for Britain" and added, "There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom."