British regulators on Wednesday blocked Microsoft’s $69-billion US purchase of video game maker Activision Blizzard, thwarting the biggest tech deal in history over worries that it would stifle competition in the fast-growing cloud gaming market.
The Competition and Markets Authority said in its final report that “the only effective remedy” to the substantial loss of competition “is to prohibit the merger.” The companies have vowed to appeal.
The all-cash deal faced stiff opposition from rival Sony and was also being scrutinized by regulators in the U.S. and Europe over fears that it would give Microsoft control of popular game franchises like Call
