Microsoft Fights Back: Tech Giant Appeals UK's CMA Decision To Block The Activision Blizzard Deal

Microsoft Corp (NASDAQ: MSFT) has taken a formal step in its battle against the U.K.'s Competition and Markets Authority (CMA) rejection of its $69 billion Activision Blizzard Inc (NASDAQ: ATVI) acquisition.

A Microsoft spokesperson confirmed to Bloomberg that the company had filed the appeal with the Competition Appeal Tribunal (CAT) on Wednesday, just in time to meet the deadline.

This judicial review process may last up to nine months. CAT cases usually have a panel of three judges, including one with specialized knowledge in the subject.

Microsoft faces an arduous battle ahead, as the tribunal can only review the legality of the decision-making process, not the actual facts involved. If the CAT finds an error in judgment, it sends the case back to the CMA. Nevertheless, the CMA has never reversed a decision sent back by the CAT.

On April 26, the CMA announced it was blocking the merger citing concerns it would have a negative impact on the fast-growing cloud gaming market, and stating Microsoft had not addressed these concerns effectively.

The European Union granted approval for the transaction earlier on May 15. "The approval is conditional on full compliance with the commitments offered by Microsoft. The commitments fully address the competition concerns identified by the Commission and represent a significant improvement for cloud gaming as compared to the current situation," the European Commission stated at the time.

Microsoft is preparing to face the challenge posed by the U.S. Federal Trade Commission (FTC) in relation to the proposed deal. The FTC has filed a lawsuit aiming to block the acquisition, with the trial scheduled to commence in early August. The court's decision on the matter is not expected until the end of the year, making it a lengthy and protracted legal battle for Microsoft.

Read Next: U.K.'s CMA On The European Commission Approval Of Microsoft And Activision Deal: 'We Stand By Our Decision'

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