Those regulators still come to their own conclusions.

It's perfectly legal for CMA to demand concessions be applied worldwide, very unlikely CAT will care about that, I don't believe it breaks procedure, laws and wouldn't fit in with the bar of irrationality. CMA already made their positions clear weeks-months ago that they want the concessions to apply worldwide. I'd guess they will argue that local concessions aren't strong enough to protect the UK market (which is filled with global companies) so the concessions have to be applied worldwide.

They've also framed themselves recently as a global regulator: UK’s Competition Watchdog Aims for Leading Global Role

Microsoft needs CMA's permission to operate in UK and there's no way around them, so CMA can demand Global Concessions, even if other Regulators approve, those Regulators can't exactly force CMA not to do it and can't punish them for doing it, they may be annoyed but I doubt it. It's ballsy to be the only regulator against something but it ain't like it hasn't happened in the past. Recent example would be UK forcing Meta to sell Giphy.

No doubt, it's frustrating but there's really nothing illegal about them demanding it.

I honestly forgot the app even existed lol

Xbox Games Showcase bingo card

That's what I understand also, even if MS where to leave the cloud market in the UK it would still impact cloud gaming actor in the UK by restricting their access to dealing with ABK as an independant entity.

However if MS wanted they could completly exit the cloud gaming industry world wide. If they were to do so, they would essentialy already have the greenlight from the CMA to proceed with the merger without the need to appeal the decision. However it is more logical for MS, if they intend on using this nuclear option, to use it only after trying every others avenues they have by appeling first, because even if they loss in appeal they could still do so.

I kind of suspect this is the reason why we don't here anything from Sony yet. They are evaluating the possibility that MS would just do so. If they find it likely they probably appeal the CMA decision themselves in a bid to also reinstate the Console SLC along with the cloud one which would be more definitive in blocking the deal.

After Reuters, Bloomberg
@TheTerminal
now also reports that the
@EU_Commission
will approve #Microsoft's purchase of #ActivisionBlizzard next week. See LinkedIn screenshot. Thanks
@SamuelStolton
.

No way Bloomberg & Reuters would both be wrong on it.

#UnblockABK

After Reuters, Bloomberg @TheTerminal now also reports that the @EU_Commission will approve #Microsoft's purchase of #ActivisionBlizzard next week. See LinkedIn screenshot. Thanks @SamuelStolton.

No way Bloomberg & Reuters would both be wrong on it.#UnblockABK https://t.co/TWSegpw1Bf pic.twitter.com/pBkbyDsXzz

— Florian Mueller (@Florian4Gamers) May 10, 2023

@Ryuu96 Here you go, don't ever say I don't put in effort for this thread :P 

I think Microsoft exiting cloud gaming is wishful thinking. I would frankly love it if they did that, but it is clearly a key strategic interest for the company and they even designed the console around accommodating the push for cloud, to the console’s own detriment (it costs a fortune to make because every series X chip is a server grade part)

10 years from now I think Xcloud will be remembered as another Microsoft boondoggle that cost them ABK and set them back in the console market. I don’t believe cloud gaming is a viable market

It certainly is an extreme scenario but don't think it amounts to wishful thinking when you weigh the pros and cons.

Pros: 

• Xcloud can lower the entry barrier to gaming
• Can be very helpful in some markets

Cons:

• XCloud is not the best option out there in terms of performance.
• Have yet to make any significant impact.
• Cannot stand on its own (need to be bundled with GPU)
• Is now preventing a $70B merger to complete
• Will prevent the benefits of having ABK library on GamePass
  • ABK library is key to many markets where Xbox+ Bethesda + Mojang is still unable to appeal properly
• Dropping Xcloud can be mitigated by other factors.
  • Increase series x production capacity
  • MS can re-enter the market in just a few years arguing that the market has precised itself sufficiently to rule out CMA arguments.
    • If CMA disagrees then, they are the ones who'll face an uphill battle against MS and would likely need to do so upon actual measurable impact on competition rather than prediction.
  • Xbox can still benefit from 3rd parties deals associated with cloud gaming, especially BYOG ones.
  • MS would probably see an increase in Azure usage and revenue from those 3rd parties as they grow.

However, the thing is MS is in no hurry anyway. CoD marketing deals more than likely would prevent them to add CoD to Game Pass until the end of 2025 anyway so they absolutely will litigate the shit out of the CMA decision in the meantime. Cause that's a calculation that's even easier to do, spend a few $10s of millions in legal fees to try to save a market worth $100s of millions sure. But, if push comes to shove would MS try to save a market that's worth $100s of millions that prevents them from greatly increasing the appeal of another already worth billions? They had to have extreme faith in the short-term benefits of Xcloud or that they can sufficiently replace the benefits of the ABK merger with other ones to do so.

That said there are probably less extremes options that can also bypass CMA's conclusion for the cloud market, I just don't know what they are.

My question is not what they say, my question is it legal.  In other words, if the rest of the world agree to the deal, how can one country decide for everyone else.  Can that decision be challenged.  I do not have a understanding of UK courts but any country trying to be the global regulator for everyone else is a clear violation as no one needs any country to be a global regulator outside of their own boarders.  Lets say the CMA block the deal because MS does not remove XCloud from other countries outside of the UK, how can the UK enforce such a decision.  I would believe that would be something that can be directly challenged.  The CMA would have to successfully defend such a stance which I believe will be extremely hard to do.  It would be very hard to say that a cloud platform not offered in the UK can somehow effect their market when its tied to a specific product that does not have the product included.

I agree they could come with some other BS but that one I would believe is very tough sell.

They can't block the deals outside of their own border but they can shut MS down from doing business within their border and they can put whatever condition with worldwide implications they want on MS to do business in the UK. The CMA's global stance is not that they want to act as a regulator for all countries but they want the remedies for their findings to not simply be addressed by specific carve out for the UK market.

However, if the condition required by the CMA is judged non-standing within the UK it'll for sure be quashed in appeal. Though In this case, the CMA can argue that even if MS were to leave the cloud gaming market in the UK specifically, their capacities will allow them to still cause an SLC for that market within the UK border.