MS-Blizzard '92 Trillion Won Big Deal' Leads to Legal Battle in the UK

The $92 trillion-scale big deal between Microsoft (MS) and Activision Blizzard is escalating into a legal battle over 'antitrust regulations' in the UK.

On the 26th (local time), according to major foreign media, MS appealed to the court against the decision of the UK antitrust regulator that blocked MS's attempt to acquire Activision Blizzard, stating that there is a "fundamental error."

On the 23rd, MS filed an appeal with the court against the decision of the UK Competition and Markets Authority (CMA) and explained the reason for the appeal, saying, "The conclusion that this deal would weaken competition in the cloud gaming market in the UK is incorrect."

Last month on the 26th, the CMA decided to block the acquisition, expressing concerns that if MS acquired Blizzard, innovation in the cloud gaming market would be stifled and consumers' choices would be reduced.

However, MS argued, "The CMA's decision is wrong," and claimed, "The CMA made fundamental errors in calculating and evaluating market share data for cloud gaming services."

They also pointed out, "There are several flaws, including overestimating the role of cloud streaming in the gaming market and our position," emphasizing, "We are committed to increasing users' choices alongside competition."

The Blizzard acquisition announced by MS early last year is the largest merger and acquisition deal MS has pursued so far, but final approvals from various countries have not yet been obtained.

Unlike the CMA's decision, the European Union (EU) regulators conditionally approved the acquisition. On the 15th, the EU Commission approved the acquisition after accepting MS's proposal to allow cloud gaming platforms to provide streaming services without paying royalties.

Earlier, in January last year, MS acquired Blizzard for $68.7 billion (approximately 92 trillion won), marking the largest merger and acquisition in the history of the global information and communication technology (IT) industry. As a latecomer in the gaming market, MS has been expanding its presence through active mergers and acquisitions, and by acquiring the gaming giant Blizzard, it has risen to stand shoulder to shoulder with China's Tencent and Japan's Sony as a major gaming company.

[Photo by Reuters]