Recently, the UK’s competition and mergers regulatory body, known as the CMA, made headlines by blocking the proposed acquisition of Activision Blizzard byMicrosoft. This acquisition was seen as an opportunity forMicrosoftto strengthen its position in the console market, where it currently trails behind competitors. As the gaming industry increasingly shifts towards mobile games and services dominated by companies like Apple, Google, and Tencent, Microsoft aimed to secure a stronger foothold through the acquisition. However, Sony managed to raise concerns about the deal, citing fears that Microsoft might block popular games likeCall of Dutyon PlayStation, despite contractual obligations stating otherwise. Sony’s efforts had a significant impact on questioning the acquisition, particularly in key markets such as the UK.
The CMA has gained something of a reputation for being out of touch and uninformed when it comes to technology deals, having faced criticism in the past for making overreaching claims against companies like Apple. Recently, the CMA faced scrutiny from the European Commission andthe UK government for its choiceto block Microsoft’s deal with Activision, citing concerns about potential harm to the “cloud gaming market,” which, by most measures, is still in its infancy. Now, another interesting aspect of this situation has come to light.
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Florian Meuller is a patent lawyer who recently made the discovery that Colin Raftery, the current senior director at the CMA, previously worked for Cleary Gottlieb, a law firm representing Sony in its regulatory objections to the acquisition. Raftery is scheduled to speak at an upcoming event focused on post-Brexit regulatory issues. Another of the speakers at the same event represents legal firm RBB, which also represents Sonyin its complaints against Microsoft’s acquisition. While Raftery no longer works for Cleary Gottlieb, there is a possibility of a conflict of interest if he maintains personal relationships with individuals who stand to benefit from blocking the deal.
