CMA blocks MS /ABK merger (Update: UK gov smears the CMA)

[SvennoJ]

chakkra said:

SvennoJ said:

https://companiesmarketcap.com/tech/largest-tech-companies-by-revenue/

I should have included Samsung and Foxconn though. But indeed Sony is big enough as well. I definitely do not want Sony to buy up ABK either. (Not that they can spend 69 Billion)

I don't like this deal either, but at the end of the day, even after this purchase Microsoft will still be in 3rd place in the gaming market so the whole "monopoly danger" don't apply in this particular instance, regardless of Microsoft's size. In fact, in can be argued that by protecting the market leader the regulators are actually doing the exact opposite of what they are supposed to do; which is why the CMA dropped the whole console market angle and made up a totally new one "Oh, we believe this might hurt a new market that it doesn't even exist yet".

At this point it has become obvious that the CMA came to this decision because they just wanted to give an example of their power, but they overplayed their hand. At the end of the day, what happens between two japanese companies affects Japan's economy one way or another, what happens between two chinese companies affects China's economy one way or another, and what happens between two US companies affects USA's economy one way or another; there is absolutely no way in hell that all the countries of the world would just sit by and let a third one to call all the shots. As is stands right now, the CMA is actually putting the UK's economy in danger, and for what exactly?

Yes, and they'll still be last place in the mobile market. So what?

They did not make up a whole new angle, that angle was always there. It was part of their original suggestions to split off King or Cod. But MS doubled down on finding both essential to the deal. What for? To do exactly what the CMA is blocking the deal for. MS is heavily pushing cloud gaming at the moment, making deals left and right with smaller streaming providers to get the ball rolling. They have their plans to open a mobile store and already have a game streaming stick design ready. MS owns Azure, uses Bing and other stuff to subsidize Gamepass (MS rewards) and of course owns Windows.

The CMA is right to say, wait a minute. Buying up the content as well is one step too far. Either split it up or call it off.

Now how is that putting the UK's economy in danger? In danger of what exactly?