Microsoft says blocked Activision deals will shake people’s trust.

Microsoft is on the offensive after UK regulators blocked the company’s planned acquisition of Activision Blizzard. Wednesday Competition and Market Authority It rejected about $69 billion in deals.It said it would result in higher prices and fewer choices for gamers.

Microsoft chairman Brad Smith said he was “very disappointed” and described the CMA’s decision as “not good for the UK”.

“People were shocked, people were disappointed, people’s confidence in British technology was severely shaken.” Smith told the BBC. in an interview on Thursday

In its decision, the CMA said Microsoft’s moves, such as promising to bring the blockbuster Activision game Call of Duty to Nintendo consoles, did not effectively address concerns that it would stifle competition in cloud gaming.

“Cloud gaming needs a free and competitive marketplace to drive innovation and choice,” said Martin Coleman, chairman of the independent panel examining the CMA deal, in a release.

Microsoft and Activision announced a $68.7 billion deal for January 2022, the largest ever for a software maker and video game industry. Xbox makers will gain control of one of the world’s largest video game companies, including popular games. Franchises like Call of Duty, Overwatch, and World of Warcraft.

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Microsoft has been trying to convince regulators around the world, including the Federal Trade Commission, that its acquisition won’t hurt competition in the video game industry. Microsoft, along with previous acquisitions such as Fallout and Doom maker Bethesda, positions the deal as the centerpiece of its Game Pass subscription service and content-building efforts to bolster its cloud gaming efforts.

On Wednesday, Activision Blizzard CEO Bobby Kotick told staff that the CMA’s decision was “Far from the final word on this deal.” Microsoft and Activion plan to appeal the decision, but face an uphill battle.

It is known that the threshold for overturning the CMA ruling is high. The Court of Appeals will only look at the CMA decision “whether it followed lawful, reasonable and due process.” wall street journal.

in statement posted on TwitterSmith said the company was “fully committed” to the acquisition, noting that the company “already signed a deal to make Activision Blizzard’s popular games available on more than 150 million devices.”

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