VETOED

U.K. Watchdog Blocks Microsoft’s $69B Activision Megadeal

Regulators said the merger would hinder consumer choice and lead to less innovation.

Britain’s antitrust watchdog has blocked Microsoft’s $69 billion Activision takeover, upending the biggest ever deal in the gaming industry. The Competition and Markets Authority said in a statement Wednesday that the deal would hinder consumer choice and lead to less innovation and possibly higher prices for gamers in the U.K. “Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors,” said Martin Coleman, chair of the independent panel of experts reviewing the deal. Both Microsoft and Activision have vowed to appeal the decision.