The Microsoft-Activision Blizzard deal is being blocked in the UK. And Activision Blizzard says it expects an “accelerated” appeals process. And will definitely appeal the ruling that blocks the online gaming company’s merger with Microsoft.

UK competition regulator, the Competition and Markets Authority (CMA), blocked the $69 billion merger deal. And cited concerns about its potential impact on the future of the cloud gaming market.

Both companies, Activision Blizzard and Microsoft, immediately confirmed that they would appeal the CMA's decision. The UK's Competition Appeal Tribunal will review the appeal, which aims to complete straightforward cases in less than nine months.

Activision Blizzard's CEO Bobby Kotick criticized the CMA's ruling as "irrational" and argued that their fears are not based on facts.

According to Kotick, the transaction was only going to enhance opportunities for competition, players, and employees. He claimed that the ruling was so flawed that it would actually create a lessening of competition, which is the opposite of the CMA's mission.

Microsoft-Activision Blizzard deal

It remains to be seen whether the case can be resolved before the current merger agreement expires on July 18. If the deal falls through, Activision Blizzard would have to pay a $3 billion termination fee.

The CMA's ruling highlights concerns that the deal would give Microsoft an unfair advantage in the cloud gaming market, potentially leading to higher prices for consumers and a reduction in innovation. 

Microsoft is already one of the leading players in the cloud gaming market. Its Xbox Game Pass subscription service boasts over 18 million subscribers. 

Activision Blizzard, which is the world's largest video game publisher, would add to Microsoft's portfolio of popular gaming franchises, including Call of Duty, World of Warcraft, and Candy Crush.

The decision by the CMA is part of a wider trend of increasing scrutiny of tech mergers and acquisitions by regulators worldwide. Governments and competition authorities are becoming more cautious about allowing big tech firms to acquire smaller rivals. 

The European Union, for example, has fined Google billions of euros for antitrust violations, and the US Department of Justice has sued Google and Facebook for alleged anticompetitive behavior.

CMA’s ruling is partially based on the idea that Microsoft will have pricing power due to its market dominance in cloud gaming. Experts are suggesting that if Microsoft is willing to keep pricing at $15 per month, plus inflation, the CMA may reverse its position.