Adobe’s CEO blasts the UK regulator after it blocked Microsoft from buying Activision Blizzard.
Shantanu Narayen slammed the Competition and Markets Authority after it expressed concern about the tech giant purchasing the video games company - citing potential monopolisation - and called their approach a “significant disincentive” for bigger firms to invest in smaller ventures.
He told the Financial Times newspaper: “I’m a big believer that if companies don’t have exit strategies — and sometimes the exit strategy is within a larger company, and sometimes it is the IPO market — that will be a significant disincentive for people to invest in new startups.”
Microsoft is heading into a dispute with the CMA over their opposition to their $68.7 billion merger - which was approved by the EU’s relevant authorities but faces questions in the US - labelling it a blow for “innovation”.
Brad Smith, the vice chairman and president of the firm - who wants to make the developer’s back catalogue available on their cloud service - said: "The CMA's decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.
"We're especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works."
Martin Coleman, who chaired the CMA’s investigation, remained firm in their findings.
He said: "Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming, and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors.”
