UK Blocks Microsoft-Activision Gaming Deal, Biggest in Tech
The Competition and Markets Authority said in its final report that “the only effective remedy” to the substantial loss of competition “is to prohibit the Merger.” The companies have vowed to appeal.
The all-cash deal faced stiff opposition from rival Sony, which makes the PlayStation gaming system, and also was being scrutinized by regulators in the U.S. and Europe over fears that it would give Microsoft and its Xbox console control of hit franchises like Call of Duty and World of Warcraft.
The U.K. watchdog’s concerns centered on how the deal would affect cloud gaming, which streams to tablets, phones and other devices and frees players from buying expensive consoles and gaming computers. Gamers can keep playing major Activision titles, including mobile games like Candy Crush, on the platforms they typically use.
Cloud gaming has the potential to change the industry by giving people more choice over how and where they play, said Martin Colman, chair of the Competition and Markets Authority’s independent expert panel investigating the deal.
“This means that it is vital that we protect competition in this emerging and exciting market,” he said.
The decision underscores Europe’s reputation as the global leader in efforts to rein in the power of Big Tech companies. A day earlier, the U.K. government unveiled draft legislation that would give regulators more power to protect consumers from online scams and fake reviews and boost digital competition.
The U.K. decision further dashes Microsoft’s hopes that a favorable outcome could help it resolve a lawsuit brought by the U.S. Federal Trade Commission. A trial before FTC’s in-house judge is set to begin Aug. 2. The European Union’s decision, meanwhile, is due May 22.
Activision lashed out, portraying the watchdog’s decision as a bad signal to international investors in the United Kingdom at a time when the British economy faces severe challenges.
The game maker said it would “work aggressively” with Microsoft to appeal, asserting that the move “contradicts the ambitions of the U.K.” to be an attractive place for tech companies.
“We will reassess our growth plans for the U.K. Global innovators large and small will take note that — despite all its rhetoric — the U.K. is clearly closed for business,” Activision said.
Redmond, Washington-based Microsoft also signaled it wasn’t ready to give up.
“We remain fully committed to this acquisition and will appeal,” President Brad Smith said in a statement. The decision “rejects a pragmatic path to address competition concerns” and discourages tech innovation and investment in Britain, he said.
“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,” Smith said.
It’s not the first time British regulators have flexed their antitrust muscles on a Big Tech deal. They previously blocked Facebook parent Meta’s purchase of Giphy over fears it would limit innovation and competition. The social media giant appealed the decision to a tribunal but lost and was forced to sell off the GIF sharing platform.
When it comes to gaming, Microsoft already has a strong position in the cloud computing market, and regulators concluded that if the deal went through, it would reinforce the company’s advantage by giving it control of key game titles.
In an attempt to ease concerns, Microsoft struck deals with Nintendo and some cloud gaming providers to license Activision titles like Call of Duty for 10 years — offering the same to Sony.
The watchdog said it reviewed Microsoft’s remedies “in considerable depth” but found they would require its oversight, whereas preventing the merger would allow cloud gaming to develop without intervention.
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Study Details Differences Between Deep Interiors of Mars and Earth
A new study based on seismic data obtained by NASA’s robotic InSight lander is offering a fuller understanding of the Martian deep interior and fresh details about dissimilarities between Earth, the third planet from the sun, and Mars, the fourth.
The research, informed by the first detection of seismic waves traveling through the core of a planet other than Earth, showed that the innermost layer of Mars is slightly smaller and denser than previously known. It also provided the best assessment to date of the composition of the Martian core.
Both planets possess cores comprised primarily of liquid iron. But about 20% of the Martian core is made up of elements lighter than iron — mostly sulfur, but also oxygen, carbon and a dash of hydrogen, the study found. That is about double the percentage of such elements in Earth’s core, meaning the Martian core is considerably less dense than our planet’s core — though more dense than a 2021 estimate based on a different type of data from the now-retired InSight.
“The deepest regions of Earth and Mars have different compositions — likely a product both of the conditions and processes at work when the planets formed and of the material they are made from,” said seismologist Jessica Irving of the University of Bristol in England, lead author of the study published this week in the journal Proceedings of the National Academy of Sciences.
The study also refined the size of the Martian core, finding it has a diameter of about 2,212-2,249 miles (3,560-3,620 km), approximately 12-31 miles (20-50 km) smaller than previously estimated. The Martian core makes up a slightly smaller percentage of the planet’s diameter than does Earth’s core.
The nature of the core can play a role in governing whether a rocky planet or moon could harbor life. The core, for instance, is instrumental in generating Earth’s magnetic field that shields the planet from harmful solar and cosmic particle radiation.
“On planets and moons like Earth, there are silicate — rocky — outer layers and an iron-dominated metallic core. One of the most important ways a core can impact habitability is to generate a planetary dynamo,” Irving said.
“Earth’s core does this but Mars’ core does not — though it used to, billions of years ago. Mars’ core likely no longer has the energetic, turbulent motion which is needed to generate such a field,” Irving added.
Mars has a diameter of about 4,212 miles (6,779 km), compared to Earth’s diameter of about 7,918 miles (12,742 km), and Earth is almost seven times larger in total volume.
The behavior of seismic waves traveling through a planet can reveal details about its interior structure. The new findings stem from two seismic events that occurred on the opposite side of Mars from where the InSight lander — and specifically its seismometer device — sat on the planet’s surface.
The first was an August 2021 marsquake centered close to Valles Marineris, the solar system’s largest canyon. The second was a September 2021 meteorite impact that left a crater of about 425 feet (130 meters).
The U.S. space agency formally retired InSight in December after four years of operations, with an accumulation of dust preventing its solar-powered batteries from recharging.
“The InSight mission has been fantastically successful in helping us decipher the structure and conditions of the planet’s interior,” University of Maryland geophysicist and study co-author Vedran Lekic said. “Deploying a network of seismometers on Mars would lead to even more discoveries and help us understand the planet as a system, which we cannot do by just looking at its surface from orbit.”
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