Microsoft president Brad Smith has spoken out to criticize the UK’s regulatory body that announced it would block the Xbox company’s proposed buyout of Activision Blizzard for $68.7 billion. Speaking to the BBC, Smith said the decision represents the “darkest day” in Microsoft’s 40-plus years in Britain. Smith also brought up Brexit, which is when the UK left the European Union in 2020. He said UK regulators are unelected and unaccountable, while leaders in the EU are more willing to come to the table and have a dialogue to help get a deal done. The head of the CMA responded to Smith’s comments and disagreed on a number of points.
“We are of course very disappointed about the CMA’s decision but more than that, unfortunately I think it’s bad for Britain,” Smith said, noting that he has an obvious bias in this matter as he represents Microsoft and wants the deal to happen. “The business community, the investment community, and the technology sector around the world have been following this case and the strong message the CMA has sent is not just to surprise everyone who fully expected this acquisition to be approved but to send a message that I think will discourage innovation and investment in the United Kingdom. And I think in that sense, the impact of this decision is far broader than on Microsoft or this acquisition alone.”
Asked about the impact on the UK of this deal breaking down, Smith said it shakes the confidence of the business community, and it also calls into question the leadership of the CMA.