CMA boss insists UK is not anti-business after blocking £55bn Call of Duty takeover

The competition watchdog boss has defended the decision to block Microsoft’s £55 billion mega merger with video game maker Activision Blizzard – a day after the European Commission gave the green light to the deal.

Sarah Cardell, CEO of the Competition and Markets Authority (CMA), said it was not her intention to create a “hostile environment” for UK businesses.

“This is a sector where together we want to ensure that we can create and support the best conditions for competition, enabling businesses large and small to thrive, including many British start-ups, many British competitors,” she told MPs. .

Cardell said the regulator regularly deals with companies and “absolutely” took Britain’s attractiveness into account when setting its strategy.

“I don’t think we’re operating in a hostile environment overall,” she told the affairs committee.

“Individual cases must be judged on their merits.

“When we look strategically at the role of the competition authority, we will absolutely consider the impact of the decisions we have made and the impact that has on the UK economy, including external reputation.”

Her comments come just a day after the European Commission approved a partnership with the world’s largest gaming company, on the condition that Microsoft ensures that Activision’s game catalog will be available for free on other cloud game streaming providers for the next ten years.

The European regulators said that the commitments made by Microsoft and Activision to maintain competition “confer significant benefits to competition and consumers.”

The decision marked a dramatic break with the CMA, which faced a barrage of criticism last month after rejecting the merger.

Microsoft Vice Chairman Brad Smith took aim at the “irresponsible” regulator, claiming that the English Channel “never seemed wider” for attracting businesses. He said: ‘There is a clear message here: the EU is a more attractive place to start a business than the UK.’

And Activision, whose video games include Call Of Duty and World Of Warcraft, mocked Prime Minister Rishi Sunak’s quest to make the UK “the world’s next Silicon Valley.”

“Global innovators will take note that, for all its rhetoric, the UK is clearly closed for business,” the San Francisco firm said last month after the CMA blockade.

Key consideration: CMA boss Sarah Cardell said the regulator regularly deals with companies and ‘definitely’ took Britain’s attractiveness into account when setting its strategy

Microsoft and Activision are already assembling a legal team to challenge the UK ruling, while in the US the Federal Trade Commission is filing a lawsuit to block the merger with a court hearing in August.

But Cardell stood its ground yesterday, saying Microsoft’s proposed plans were inappropriate and would have allowed the tech giant to “establish ten-year trading terms.”

“I believe strong competition is a positive signal for the UK’s reputation externally,” said the CMA chief. “You want to have strong competition in markets, it promotes growth and promotes innovation.”

Asked about how much the CMA has been cooperating with US authorities over the Activision Blizzard acquisition, Cardell said: “We’re definitely not, and I’d like to clarify this because I think there’s been some speculation in the press about it – we’re doing absolutely not.” offering other agencies.’

Appearing alongside Cardell on the House of Commons committee was CMA chairman Marcus Bokkerink, who also opposed the idea that blocking deals would make Britain less attractive.

“We are vigilant, because it is our duty to be vigilant, about investments that consolidate and anchor market power,” he said.

“I think I would challenge the premise that if there is an impact on international confidence in doing business in the UK, the best way to serve that confidence is to turn a blind eye to anti-competitive mergers.”

Microsoft has until July 18 to complete the merger before it owes Activision a termination fee of up to £2.4 billion.