After publicly criticizing the UK’s Competition and Markets Authority (CMA) over its initial blocking of the Activision Blizzard acquisition, Microsoft is now singing a different tune. Following the restructuring of the deal and subsequent approval from the CMA, Microsoft President Brad Smith adopted a more conciliatory tone, describing the regulator as “tough and fair” in a recent interview.
As first reported by The Verge, Smith’s initial response to the CMA’s decision in April 2023 was far from complimentary. He characterized it as the “darkest day” for Microsoft in the UK and expressed concerns about the country’s attractiveness for business ventures. Smith even went so far as to suggest the European Union offered a more welcoming environment.
However, with the revised deal securing CMA approval in October, Smith’s stance has softened considerably. It may be because the CMA eventually approved, but we have no way to say for sure. He acknowledged learning from the experience and suggested he might have chosen “slightly different words” to convey his initial concerns.
The CMA’s role in shaping the deal cannot be understated. The regulator pushed for significant changes, including Microsoft relinquishing key cloud gaming rights in the UK and several other markets. Smith acknowledged this with, “the CMA held to a tough standard, and I respect that. In my view, it was tough and fair.” He credited the CMA with prompting Microsoft to modify its approach to the acquisition, ultimately paving the way for its approval.
Despite Smith’s change of heart, the CMA hasn’t forgotten Microsoft’s initial tactics. CMA CEO Sarah Cardell previously warned businesses against employing similar strategies, stating that “Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work.”
It sounds like Microsoft is trying to mend the relationship that the initial backlash started to hurt. The saga between Microsoft and the CMA has been a wild one, but we’re glad it’s mostly over.
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