In a surprising turn of events, Microsoft has fired back at UK authorities after its proposed acquisition of Activision was blocked by the Competition and Markets Authority (CMA). The tech giant had announced its plans to acquire the video game company for $68.7 billion in January 2022.

Microsoft had hoped that the acquisition of Activision would help expand its gaming business and give it an edge in the highly competitive industry. However, the CMA concluded that the acquisition would lead to a substantial reduction in competition and choice for consumers in the UK.

In response, Microsoft released a statement calling the decision “disappointing” and “fundamentally flawed.” The company claimed that the CMA had failed to properly consider the benefits that the acquisition would bring to consumers, such as increased investment in new games and technologies.

Microsoft also accused the CMA of ignoring the competitive landscape of the gaming industry, arguing that it is not just limited to traditional console makers, but also includes cloud gaming services and mobile gaming platforms. The company suggested that the CMA’s decision could stifle innovation and hurt the UK’s standing in the global gaming industry.

In a show of defiance, Microsoft has said that it will consider all options, including legal action, to overturn the CMA’s decision. The company also noted that it has received support from other regulators around the world, including the US Department of Justice and the European Commission.

The CMA’s decision to block the acquisition is a significant blow to Microsoft, which has been looking to expand its gaming business in recent years. The company has made a number of high-profile acquisitions in the gaming space, including Minecraft maker Mojang and Bethesda Softworks, the developer behind the popular Elder Scrolls and Fallout franchises.

It remains to be seen whether Microsoft’s efforts to overturn the CMA’s decision will be successful. However, one thing is clear: the battle for dominance in the gaming industry is far from over, and Microsoft is determined to stay at the forefront of this rapidly evolving market.