Sony's Influence: CMA Senior Director's Past with Law Firm
CMA Senior Director's past affiliation with a law firm representing Sony raises questions about potential conflicts of interest in recent decision-making, particularly in blocking Microsoft's proposed acquisition of Activision Blizzard Sony's involvement in raising concerns about the deal adds to the scrutiny
Recently, Microsoft's proposed acquisition of Activision Blizzard was blocked by the UK's competition and mergers regulatory body, the CMA. The acquisition was viewed as an opportunity for Microsoft to bolster its position in the console market, where it currently lags behind its competitors. With the gaming industry increasingly shifting towards mobile games and services, dominated by companies like Apple, Google, and Tencent, Microsoft sought to secure a stronger foothold through the acquisition. However, Sony raised concerns about the deal, fearing that Microsoft might violate contractual obligations by blocking popular games like Call of Duty on PlayStation. Sony's efforts had a significant impact on questioning the acquisition, particularly in key markets such as the UK.
The CMA has been criticized in the past for making overreaching claims against companies like Apple, and for being out of touch and uninformed when it comes to technology deals. Recently, the CMA faced scrutiny from the European Commission and the UK government for blocking Microsoft's deal with Activision, citing concerns about potential harm to the "cloud gaming market," which is still considered to be in its infancy by most measures. Another interesting aspect of this situation has now come to light.
Florian Meuller, a patent lawyer, recently uncovered that Colin Raftery, the current senior director at the CMA, had previously worked for Cleary Gottlieb, a law firm that represented Sony in its regulatory objections to an acquisition. Raftery is scheduled to speak at an upcoming event focused on post-Brexit regulatory issues. Another speaker at the event represents legal firm RBB, which also represents Sony in its complaints against Microsoft's acquisition. Although Raftery no longer works for Cleary Gottlieb, there may be a conflict of interest if he maintains personal relationships with individuals who stand to benefit from blocking the deal.
The culture of political favoritism in the UK has been a long-standing issue, and the pandemic has only added fuel to the fire. The current ruling party has been accused of awarding lucrative contracts to friends and associates, using taxpayers' money. This has raised serious concerns about the need for better oversight of the CMA's regulatory operations. The decision to block Microsoft's deal, which has been approved in other regions, has been criticized for being flawed. The argument that Microsoft is the "largest" cloud operator and that Xbox Game Pass Ultimate subscribers can access cloud gaming has been called into question.
Moreover, the CMA's decision seems to have overlooked the fact that Amazon Luna was launched shortly after the decision was finalized. According to the CMA's logic, Amazon Luna would now be considered the largest cloud gaming provider in the UK due to the estimated 13 million primary account holders subscribed to Amazon Prime in the UK market. This raises serious doubts about the consistency of the CMA's decisions and highlights the need for a more rigorous and transparent regulatory framework.
Source: Windows Central
