Microsoft's potential $68 billion purchase of Activision Blizzard has seen a rather major setback, as the discussion of fairness and its legitimacy have been called into question. The United Kingdom's Competition and Markets Authority has decided to block the acquisition on the grounds that this will lead to a great reduction in innovation.

In a press release from the UK CMA, the biggest concern appears to be over Microsoft's accessibility in cloud gaming, which is perceived to be an advantage in the market. A portion of the press release reads as such:

The final decision to prevent the deal comes after Microsoft’s proposed solution failed to effectively address the concerns in the cloud gaming sector, outlined in the Competition and Markets Authority’s (CMA) provisional findings published in February.

...Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service.

The CMA also listed in detail many of the shortcomings the viewed Microsoft did not fully comply to ensure an even field for cloud gaming competition in their proposal.

• It did not sufficiently cover different cloud gaming service business models, including multigame subscription services.
• It was not sufficiently open to providers who might wish to offer versions of games on PC operating systems other than Windows.
• It would standardise the terms and conditions on which games are available, as opposed to them being determined by the dynamism and creativity of competition in the market, as would be expected in the absence of the merger.

Microsoft seeks to appeal this ruling, according to CEO Brad Smith, and another offer another opportunity to meet the standards going forward.