Microsoft has reportedly hired a lawyer known for repeatedly defeating the EU regulator in competition cases, as it prepares to appeal the UK regulator’s decision to block its acquisition of Activision Blizzard.

Last month the UK’s Competition and Markets Authority (CMA) prevented the deal from going ahead, citing concerns over its effect on competition in the cloud gaming market.

The Telegraph reports (via Yahoo Finance) that the company has now hired Daniel Beard KC and plans to lodge an appeal at the UK’s Competition Appeal Tribunal in a matter of days.

Beard, who is described in the article as a “leading competition barrister”, has a reputation for overturning large-scale decisions made by the EU regulator.

He represented Apple after the EU demanded the company pay €13 billion in taxes because it claimed Ireland had offered it illegal state aid. Apple went on to win the appeal.

He also represented Intel last year in a successful attempt to overturn a decade-old €1.1 billion fine after the EU claimed it was unfairly dominating the microchip market.

Microsoft now hopes Beard will be similarly successful in appealing the CMA’s decision to block the company’s $69 billion acquisition of Activision Blizzard.

The EU is also investigating the acquisition, and is said to be expected to make its decision within the next two weeks (though the article cites sources “close to the invesitgation”, saying they expect the EU to approve the deal).

Microsoft also has a legal battle to deal with in the US, as the Federal Trade Commission stated in December that it would be suing the company in a bid to block the deal over competition concerns.

After months of investigation, the UK regulator published its final report on the deal last month and said it had prevented it over concerns it would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come”.

Microsoft’s president Brad Smith said the company was “disappointed” by the CMA’s decision and said it would appeal, claiming the decision “appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works”.



Posted: May 09, 2023 8:28 am
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Source: https://www.videogameschronicle.com/news/microsoft-hires-an-eu-beating-lawyer-to-help-overturn-uk-regulators-activision-merger-block/