What Microsoft president Brad Smith has to say on UK blocking Activision Blizzard deal – Times of India

The UK Competition and Markets Authority (CMA) this week blocked Microsoft’s $68.7 billion acquisition of Activision Blizzard saying that the deal will make the Satya Nadella-led company stronger in cloud gaming, “stifling competition in this growing market.” While both Microsoft and Activision Blizzard have issued statements, company president Brad Smith has now said CMA’s move was “bad for Britain”. He even termed it as Microsoft’s “darkest day” in its four decades of working in the country.
In an interview with BBC, Smith said that Microsoft was “very disappointed” with the CMA’s decision, “but more than that, unfortunately, I think it’s bad for Britain”.
“It does more than shake our confidence in the future of the opportunity to grow a technology business in Britain than we’ve ever confronted before. People are shocked, people are disappointed, and people’s confidence in technology in the UK has been severely shaken,” he was quoted as saying.

With CMA’s decision, the multi-billion dollar deal cannot go ahead globally. It is to be noted that the deal is under investigation in the US and the UK. Both Microsoft and Activision Blizzard said that they will work to reverse this and will appeal the decision.
The UK closed for business?
Activision Blizzard previously said that the company will reassess its “growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business”.
This was echoed by Smith who said, “There’s a clear message here – the European Union is a more attractive place to start a business than the United Kingdom.”
Microsoft has already said the decision may have an impact on the company’s investments in the UK. He added if the UK wants to bring in investment, then “it needs to look hard at the role of the CMA and the regulatory structure”.

Meanwhile, a spokesman for Prime Minister Rishi Sunak said Smith was wrong to say the CMA’s decision was bad for Britain and that the EU was a better place to do business, the BBC report said.
The spokesman said that the government would continue to engage with Microsoft and that the CMA is an independent entity.
UK ‘open for business’: CMA
The CMA’s chief executive, Sarah Cardell, said she did not agree with Smith’s comments.
“I think this decision shows actually how important it is to support competition in the UK and that the UK is absolutely open for business,” she was quoted as saying.
“We want to create an environment where a whole host of different companies can compete effectively, can grow and innovate,” the executive added.
According to CMA, combining Activision and Microsoft – which already has a 60-70% share of the cloud gaming market – would “really reinforce… [its] strong position”.