Microsoft is appealing the decision of the UK to prohibit its $69 billion merger of "Call of Duty" creator Activision Blizzard due to "fundamental errors" in the evaluation of Microsoft's cloud gaming services.

The Competition and Markets Authority (CMA) of the UK denied the agreement in April, claiming it would harm competition in the young cloud gaming business, provoking a fierce backlash.

Microsoft stated this week that it has filed an appeal with Britain's Competition Appeal Tribunal (CAT) against the verdict, and a summary of its arguments was released on Friday.

According to the summary, the CMA's finding that the merger would result in a significant reduction in competition in the United Kingdom's cloud gaming industry was incorrect.

It also stated that it would contest the CMA's knowledge of the cloud gaming market and the implications of the merger, outlining five grounds for appeal in total.

Rima Alaily, Microsoft Corporate Vice President and Deputy General Counsel, said the CMA's decision was "flawed for multiple reasons, including its overestimation of the role of cloud streaming in the gaming market and our position in it, as well as its unwillingness to consider solutions that received overwhelming industry and public support".

"We are confident in the strength of our appeal and the binding commitments we have made to increase competition and choice for players today and in the future."

 

The Competition Appeals Tribunal hears appeals against CMA judgements and renders a determination on the merits of the decision; this is not an opportunity for Microsoft to submit fresh remedies.

The EU's competition regulators authorized the agreement earlier this month after accepting Microsoft's proposed remedies, which were largely equivalent to those suggested in the UK.

Microsoft has also appealed the Federal Trade Commission's decision to ban the merger on the grounds that it will limit competition, according to the agency.