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Amidst crazy busy earnings and layoffs, the big story was the UK's Competition and Markets Authority blocking Microsoft’s $69 billion acquisition bid for Activision Blizzard. Why? Microsoft failed to address competition concerns regarding cloud gaming, according to Sarah Cardell. The decision is a victory for global efforts to regulate Big Tech companies. The ruling also reflects the increasing broadening of a worldwide antitrust lens to cover emerging markets, which are being shaped to avoid monopolies by a few giant companies.
Regulators in the European Union are expected to rule on the acquisition by May 22. Microsoft has said it will appeal the UK's decision but may be forced to pay a $3 billion breakup fee to Activision if it fails. The move would mean the end of the biggest shake-up the gaming industry has seen in decades.
Overall, the decision to block Microsoft's acquisition of Activision is a significant setback for the tech beast and a major victory for those who advocate for greater regulation of Big Tech. With regulatory scrutiny of the industry continuing to intensify, it is likely that we will see more rulings like this in the future. The fact that the ruling came from the UK's Competition and Markets Authority, rather than the European Union, is also noteworthy. It suggests that countries outside the EU are taking a more proactive stance on tech regulation and are willing to use their own antitrust laws to block deals they deem anti-competitive. This could have significant implications for the tech industry, as companies will need to navigate a patchwork of different regulatory regimes worldwide to expand their businesses.
SO WHAT?
__ DO __ Expect more rulings like this in the future. // __ DON’T __ Think the ruling doesn’t have massive implications for other tech giants, such as Amazon, Google, Apple, and Meta, as they continue to face scrutiny over their power over online commerce and communications. All will be watching this very carefully.
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/// TRY: Learning a new language by watching Netflix and YouTube. [Trancy]
/// WATCH: The on-demand version of TBD Conference ‘Materia’. [Newcon]
/// BUY: Fold laptop stand, compact, beautiful and perfect for remote work. [Native Union]
Humane’s new wearable is getting a lot of tongues wagging. /3 mins
New nanoparticles can perform gene editing in your lungs. /5 mins
Palantir just demoed an AI that can go to war to the Pentagon. /5 mins
This tongue-controlled mouse will help millions. /4 mins
Generative AI is about to see a lot of regulation and new laws. /5 mins
‘Blue Sky’ (or another new Twitter) is getting a lot of buzz. /5 mins
AI replacements are not 100% but very close; banks should be worried. /6 mins
Keep an eye on ZipLine, the drone delivery startup valued at $4b. /4 mins
Reddit is testing Discord-esque channels. /4 mins
Clubhouse laid off half its staff this week. /5 mins
ALL THIS HAPPENED TOO: The New York City MTA ended its Twitter service alerts, saying the platform is “no longer reliable”, Meta had ok earnings that pushed its stock way up, Amazon announced good earnings, Didi earnings were bad, Dropbox laid off 16% of staff, Robinhood announced a new way to fund a web3 wallet, US senators unveiled a bipartisan bill that bans kids under 13 from joining social media and requires tech companies to get parental consent for teens' accounts, ChatGPT is back in Italy, Pinterest announces a multi-year strategic ad partnership with Amazon, Snap had bad earnings, Triller paid off Sony Music, Canada's Online Streaming Act passed the final hurdle in Parliament, Amazon also shut down its Halo wearable, YouTube Music added podcasts everywhere, the global smartphone shipments dropped 14%, and we found out that since Elon Musk's takeover, Twitter has received 971 government orders globally and has fully complied with 808, an 83% compliance rate, vs. ~50% before Musk.
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