On April 26, 2023, the Competition and Markets Authority (CMA) blocked what would otherwise have been the largest deal in the gaming industry to date. The decision highlights several important trends, such as: In dynamic markets, regulators are focusing in on whether a deal harms or could harm future competition (i.e., innovation based on predications raising significant uncertainties). The CMA speculated that the deal would “alter the future of the fast-growing cloud gaming market” and preferred to maintain the status quo with the block. Regulators are focusing more and more on non-horizontal relationships and supply chain issues, particularly if one party is vertically integrated. Whereas in the past, concerns could often be remedied via behavioral commitments, more and more deals
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The UK Competition Authority blocks the proposed acquisition of a leading video game publisher by a Big Tech company (Microsoft / Activision Blizzard)
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