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Microsoft is in the process of acquiring giant Activision, a video game giant that produces popular games such as Call of Duty to Warcraft. However, the acquisition process was blocked by the authorities in England, making Microsoft bosses angry.
The acquisition worth more than USD 68 billion has been approved in several countries, but not in the UK. The Competition & Markets Authority (CMA) fears the deal will sap innovation and give gamers less choice in the fast-growing cloud gaming marketplace, where people buy subscriptions to access games online.
Microsoft president, Brad Smith, touted and called the decision bad for England itself. Indeed, the British regulator's decision threatens to cancel the acquisition process, although Microsoft can still appeal.
"Activision is in different markets, cannot be separated. So this decision prevents the deal from happening globally," said CMA. They said the decision was independent and in the best interests of consumers.
In an interview with the BBC that we quoted, Smith revealed that Microsoft was very disappointed with the CMA's decision. "That more than shakes our belief in the opportunity to grow our technology business in the UK in the future," he said.
"People are shocked, people are disappointed and people's trust in technology in the UK has been badly shaken. There is a clear message here, the European Union is a more attractive place to start a business than the UK," he said.
Prime Minister Rishi Sunak's spokesman responded by saying Smith was wrong to call the CMA decision bad for the UK and that the European Union was a better place for business.
"Such claims are not supported by facts," he said, adding that the UK's gaming sector had doubled in size in the last 10 years. The government will continue to liaise with Microsoft and affirm that CMA is independent.