Microsoft president Brad Smith has backtracked on his hefty criticism of the UK’s Competition & Markets Authority (CMA) following approval for the company's acquisition of Activision Blizzard.
After the CMA blocked the $68.7 billion deal in April 2023, Smith launched a tirade against the regulator, suggesting that confidence in the UK had been “severely shaken” by the decision and that the European Union represented a “more attractive place to start a business”.
Speaking at the time, Smith told the BBC that the decision was 'bad for Britain' and that the government should “look hard” at the role of the CMA and the regulatory structure. It was, he said, the company's darkest day in 40 years of operating in the UK.
Now, though, Smith says the decision was "tough, and fair".
"It pushed Microsoft to change the acquisition that we had proposed, for Activision Blizzard to spin out certain rights that the CMA was concerned about with respect to cloud gaming," he told BBC Radio 4's Today Programme.
"I think the CMA vindicated its position, but still created a pragmatic path forward for innovation and investment. I think that is good for everyone.
"I wouldn’t step back necessarily from all of the concerns I raised when I talked way back in April, but I might choose slightly different words to make my point."
The CMA objected to the original terms of the deal on the grounds that it would harm competition and consumer choice.
Microsoft later agreed to transfer the cloud streaming rights for Activision's titles to French video games publisher Ubisoft for a fifteen-year period, allowing gamers to stream games such as Call of Duty and World of Warcraft on rival consoles. The deal eventually closed on 13 October 2023.
However, the company's reluctance to restructure the deal earlier on led CMA chief exec Sarah Cardell to criticize the firm, suggesting that it had willfully dragged out proceedings in a bid to stifle regulatory processes.
"Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA,” she said. “Dragging out proceedings in this way only wastes time and money."
Meanwhile, the deal is still under investigation in the US, where the Federal Trade Commission (FTC) is attempting to block it on similar grounds, with an appeals court decision expected in the next few months.
Brad Smith the latest to backtrack on regulatory battles
Smith's outburst in the wake of the CMA's initial decision isn't the first example of a major industry exec coming out guns blazing in response to regulatory decisions.
RELATED RESOURCE
Find out how you can improve end user experience with AI
Last year, OpenAI chief executive Sam Altman warned that the generative AI firm could pull out of Europe in response to the EU's proposed AI regulations.
The threat from Altman was heavily criticized by lawmakers across the union, with Thierry Breton, European commissioner for internal markets, hitting back at the comments.
Breton said at the time that rules on AI development “cannot be bargained”.
Altman also backtracked on his comments, and within days issued a statement insisting the firm had "no intention" of pulling out of the union.
-
M&S suspends online sales as 'cyber incident' continuesNews Marks & Spencer (M&S) has informed customers that all online and app sales have been suspended as the high street retailer battles a ‘cyber incident’.
-
Manners cost nothing, unless you’re using ChatGPTOpinion Polite users are costing OpenAI millions of dollars each year – but Ps and Qs are a small dent in what ChatGPT could cost the planet
-
Microsoft just hit a major milestone in its ‘zero waste’ strategyNews Microsoft says it's outstripping its zero waste targets, recording a 90.9% reuse and recycling rate for servers and components in 2024.
-
CyberOne appoints Microsoft’s Tracey Pretorius to its advisory boardNews The threat intelligence leader will provide strategic guidance to CyberOne’s executive team
-
"I LOVE this company!" Looking back on 50 years of tech giant MicrosoftOpinion There have been highs, lows, laughs and lots of success in the past 5 decades for the Redmond-headquartered firm
-
The CMA just dropped its probe into the Microsoft–OpenAI dealNews The CMA has dropped its probe into the partnership between Microsoft and OpenAI, saying the deal doesn't give Microsoft a controlling interest over the AI firm.
-
Microsoft says there’s an AI divide brewing – here’s how enterprises can get on the right sideNews Research from Microsoft and Goldsmiths University suggests there is a growing 'AI divide' among enterprises adopting the technology and those sluggish to react.
-
‘Europe could do it, but it's chosen not to do it’: Eric Schmidt thinks EU regulation will stifle AI innovation – but Britain has a huge opportunityNews Former Google CEO Eric Schmidt believes EU AI regulation is hampering innovation in the region and placing enterprises at a disadvantage.
-
Microsoft promises more AI spending despite cloud cost stumbleNews Microsoft recorded revenue and earnings growth in its latest quarterly results, but higher than expected costs in cloud and AI raised investor concerns.
-
Microsoft staff face second round of layoffs as firm continues cost-cutting measuresNews The size of the layoffs has not been specified, though Microsoft has said they will be small
