The UK’s Competition and Markets Authority (CMA) has blocked Microsoft’s proposed acquisition of US-based video game holding company Activision Blizzard over fears of stifled competition in the cloud gaming market.

What Happened?

Back in January 2022, Microsoft entered a £68.7 billion deal to buy Activision, one of the most popular video games publishers globally.

This led to the CMA launching a review of the deal in September 2022, so in February 2023, the CMA provisionally found that the merger could make Microsoft even stronger in cloud gaming, and in doing so, stifle competition in a growing market that is forecast to be worth up to £11 billion globally and £1 billion in the UK by 2026.

The provisional findings outlined concerns that the CMA had, to which Microsoft replied with remedies that offered a potential solution to the concerns. After considering Microsoft’s proposed solution, the CMA made the decision to block Microsoft’s acquisition of Activision Blizzard, saying: “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.”

The Main Concerns

The main concerns that the CMA had/still has, which led to its decision are that :

• Microsoft already has around 60-70 per cent of global cloud gaming services plus other important strengths in cloud gaming, e.g. owning Xbox, the leading PC operating system (Windows) and a global cloud computing infrastructure (Azure and Xbox Cloud Gaming). Acquiring Activision Blizzard would reinforce Microsoft’s already significant advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch and World of Warcraft.
• The cloud means that UK gamers can avoid buying expensive gaming consoles and PCs and have more flexibility and choice as to how they play. Allowing Microsoft an even stronger position in the cloud gaming market, which is in a rapid-growth stage, would undermine the innovation that is crucial to the development of these opportunities.
• Also, the CMA noted that, without the merger, Activision looked likely to start providing games via cloud platforms in the near future.

Shortcomings in the Remedies

The behavioural remedies submitted to the CMA by Microsoft, i.e. the ways it said it could regulate its behaviour to the point where it may be contrary to its commercial incentives in the interest of fairness (to be judged by the CMA) did not satisfy the CMA. For example, the shortcomings noted by the CMA which led to the recent decision to block the merger were:

• It didn’t fully cover different cloud gaming service business models, including multigame subscription services.
• It could have been more open to providers wanting to offer versions of games on PC operating systems other than Windows.
• It would standardise the terms and conditions on which games are available, rather than letting the developing market decide them.
• There would be a risk of disagreement and conflict between Microsoft and cloud gaming service providers due to Microsoft’s remedy only applying to a certain set of Activision games, and only streamable in a defined set of cloud gaming services if purchased in a defined set of online stores.

Essentially, the CMA thought that accepting Microsoft’s remedy would mean that regulatory oversight would be required, whereas such oversight wouldn’t be required if the merger was prevented, and market forces were simply allowed to naturally operate and shape the development of cloud gaming.

One Down – Two To Go

Although the UK’s regulator has made its decision, the merger deal also needs to be approved by regulatory bodies in the United States and European Union to go through. However, the worry is that the CMA’s ruling could have destroyed any chances of the others ruling in its favour.

Reaction

The blocking of the merger led to an initial angry reaction from Microsoft, with Microsoft’s president Brad Smith saying, “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom” and that “this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”

Activision’s CEO Bobby Kotick echoed the criticism of the decision, saying, “We will reassess our growth plans for the UK” and the company said in a separate statement: “Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”

What Does This Mean For Your Business?

Gaming market commentators have highlighted how Microsoft has invested heavily in the cloud gaming model where gaming titles are streamed rather than the customer owning them. Also, the merger would have been about securing Microsoft’s place in this future model of gaming and controlling some extremely popular games, hence the angry reaction when the UK regulator blocked the merger. However, as noted by the CMA, Microsoft is already in a very powerful position in the gaming market, thus approving the merger could have led to the need for regulation and could have stifled competition and been unwelcome news for many smaller competitors in what is a rapidly growing and changing gaming market. It has also been noted by some commentators that Sony may be particularly pleased with the decision given its opposition to the merger over how its PlayStation could have suffered restricted access to some of the world’s most popular games.

However, the matter is certainly not over yet, with Microsoft and Activision Blizzard planning to reverse the decision on appeal in the UK, plus with decisions from EU and US regulators still to come in a deal that many expected would have gone through. The outcome of these additional regulatory reviews could have significant implications for the gaming industry, Microsoft, and Activision Blizzard, as well as for businesses and consumers who rely on these platforms and services.

WhatsApp has announced that it is introducing the ability to use the same WhatsApp account on multiple phones.

Message Seamlessly Across All Devices

WhatsApp says that this change gives users globally the ability to message seamlessly across all their devices without signing out, and to pick up their chats where they left off.

Employees Can Use The Same Account

For small businesses, for example, being able to use the same WhatsApp account on multiple phones means that in addition to the business owner, other employees are now able to respond to customers directly from their phones under the same WhatsApp Business account.

Phone As One Of Up To Four Additional Devices

The change means that users can link their phone as one of up to four additional devices, the same as when linking with WhatsApp on web browsers, tablets, and desktops.

When and Who?

The update has already started rolling out to users globally and will be available to everyone in the coming weeks.

Maintains The Same Level Of Privacy And Security

WhatsApp says that the change won’t mean any loss of privacy and security because:

• Each linked phone connects to WhatsApp independently, ensuring that personal messages, media, and calls are end-to-end encrypted.
• If the primary device is inactive for a long period, WhatsApp will automatically log the primary out of all companion devices.

Receive One-Time Code

WhatsApp has also said that it’s introducing an alternative and more accessible way to link to companion devices by allowing users to enter their phone number on WhatsApp Web to receive a one-time code, which can be used on their phone to enable device linking, rather than having to scan a QR code.

Isn’t WhatsApp Going To Block UK Users Anyway?

Whilst this sounds like a potentially useful update, it’s not long since the boss of WhatsApp, Will Cathcart, said he would rather stop users in the UK from using the app than lower its security, as suggested by the UK’s Online Safety Bill. It’s also only a couple of weeks since Cathcart and the head of the Signal app signed an open letter warning of ‘unprecedented threat to safety and security’ of UK citizens if the bill effectively ended end-to-end encryption and allowed the scanning of private messages.

What Does This Mean For Your Business?

For small businesses, allowing multiple employees to connect to the same WhatsApp account with their individual devices could deliver faster and more joined-up communications as they can respond directly to customers. It will also save time and effort by not having to sign out and by being able to quickly pick up their chats where they left off, thereby improving efficiency.

Giving WhatsApp Web users the option to be sent a code rather than always having to scan a QR Code may also simplify matters for many users. Businesses will also be pleased to hear that the new WhatsApp update won’t compromise security and privacy. However, WhatsApp has still not resolved its issue with the UK government over the Online Safety Bill’s potential to damage the privacy and security of the app, and UK businesses are still faced with the prospect that WhatsApp could simply ban them as users if the issue is not resolved soon.

Dutch start-up ‘Oceans of Energy’ has been awarded the contract for installing and operating an offshore solar farm inside the Hollandse Kust Noord offshore wind park by CrossWind, a joint venture between Shell and Eneco.

World First 

Oceans of Energy says it will be the first offshore solar farm in the world to be connected, installed, and operated within a wind farm in high wave conditions.

What Is Offshore Solar? 

Offshore solar refers to the installation of solar panels on floating platforms or structures in bodies of water, such as oceans or lakes.

Solar Farm Between The Offshore Wind Turbines 

The solar panels for the project will be situated in-between the offshore wind turbines, representing an efficient way of sharing the sea space.

CrossWind’s Hollandse Kust Noord project will also use innovative, cutting-edge technologies and engineering solutions to improve the flexibility of offshore wind parks.

Energy Produced On Less Sunny Days Too 

Having an offshore solar within an offshore wind park makes it possible to also produce energy on sunny but less windy days, thereby increasing the utilization of the offshore power grid infrastructure.

The Benefits Of Offshore Solar 

Having solar farms offshore can deliver a range of operational and green benefits, including:

– Increased efficiency: Offshore solar panels can capture more sunlight than onshore panels due to the absence of obstructions such as buildings, trees, or mountains. This results in increased efficiency and higher energy yields.

– Reduced land use: Offshore solar facilities can reduce the need for land-based solar projects, which can have a significant impact on wildlife habitats and local ecosystems.

– Reduced water consumption: Offshore solar panels require less water for cleaning and maintenance compared to land-based solar farms, which can be beneficial in areas with water scarcity.

– Enhanced energy security: Offshore solar can enhance energy security by diversifying the energy mix and reducing dependence on fossil fuels.

– Lower costs: As technology advances and economies of scale are achieved, the costs of offshore solar are expected to decrease, making it a more viable and cost-effective option for renewable energy generation.

– Reduced transmission losses: Offshore solar facilities located near coastal regions can reduce transmission losses by generating electricity closer to the point of consumption.

Overall, offshore solar has the potential to provide a significant contribution to the renewable energy mix while mitigating the negative impacts associated with land-based solar projects.

A Project With Several ‘Firsts’ 

The CrossWind and Oceans of Energy add offshore solar project is thought to have several ‘firsts,’ including:

– It’s the first wind park in the world with an offshore combination of battery storage and round-trip green hydrogen produced from offshore wind power on a Megawatt scale.

– It is also thought to be the first wind park that has committed to mature and demonstrate offshore wake control technologies like closed-loop active wake steering in combination with the novel active wake mixing to try and increase the efficiency of wind parks.

– A world first for an offshore solar system that’s electrically connected and operated within a wind park in harsh sea/high wave conditions.

Why More Difficult In Harsh Sea Conditions?

High wave conditions can make it more challenging to operate an offshore solar farm because of the risks of structural damage to the structures that support the solar panels, safety concerns (for maintenance and repair workers), reduced efficiency, and increased maintenance costs.

An Important Role In Energy Transition 

Maria Kalogera, Innovations Manager of CrossWind, said about the project, “Offshore floating solar is an exciting area of renewable energy development that is poised to play an important role in the energy transition.” 

Allard van Hoeken, founder and CEO of Oceans of Energy, said, “We will add offshore solar to offshore wind. Our performance and our system will be key to the success of the innovative part of the offshore wind farm.” 

When Will It Be Up And Running? 

The Oceans of Energy offshore solar farm won’t actually be working until 2025, but the wind park will be operational by the end of this year.

What Does This Mean For Your Organisation? 

Although this is joint project with many ‘first offs,’ it could be the shape of things to come. A combination of new technologies has enabled the addition of a solar farm to an existing wind park’s offshore power grid infrastructure, thereby making it more efficient and saving costs, time, and resources. Finding sustainable, green energy sources is now a more pressing concern than ever and this development makes use of two of them most abundant sources in a way that doesn’t have an impact on the land. Although the solar farm side of the project is still some way from being operational, if successful it could provide opportunities in coastal areas around the world giving homes and businesses access to affordable green energy.

Computers, Margaret Thatcher & Ice Cream

On 6^th May 1949, the Electronic Delay Storage Calculator (EDSAC) ran its first set of programs. This historic British computer calculated a table of square numbers and a list of prime numbers. It was developed by Maurice Wilkes with his team at the University of Cambridge Mathematical Laboratory.

The computer was built on the top floor of a building that was once a dissecting room. As one of the research students (John Bennett) at the time recalls, this had an advantage and a disadvantage to it. On the plus side, the building possessed a large lift which was designed to fit 2 cadavers, making it very spacious. However, during summer the researchers would get sickened by the smell formalin vapour because of the heat warming up the formalin saturated floorboards.

EDSAC was largely financed by J. Lyons and Co., a British restaurant, food, and hotel conglomerate. You may remember Lyon’s biscuits. A little-known Margaret Thatcher used to work there as a chemist before she became an MP (she invented ‘soft-scoop’ ice-cream!). The management at Lyons saw the potential of computing in business applications, given the huge administrative overheads businesses like theirs would carry.

One of the key contributions of EDSAC to computing in business was the automation of repetitive and time-consuming tasks like payroll calculations or inventory management. These labour-intensive and time-consuming endeavours were costly and prone to errors.

The Lyons company were so enthusiastic that they would go on to build their own stored-program computer – the Lyons Electronic Office I (LEO  in 1951. Naturally, EDSAC’s introduction was a newsworthy event for the whole country at the time, likely on the same level as AI technologies like ChatGPT today, and just like today, people back then could not help but speculate what the future would hold.

A June 1949 news article from The Star wrote – ‘The “brain” (referring to the computer) may one day come down to our level and help with our income-tax and book-keeping calculations. But this is speculation and there is no sign of it so far.’

What would that person think now?

But computing isn’t the only field EDSAC had a profound impact on. It was also the first computer used to solve a problem in the field of Biology, when it was used to solve a differential equation relating to gene frequencies.

EDSAC was without a doubt a ground-breaking invention, made possible by the financial support of a foresighted company who recognised its potential for business use. This serves as a reminder of the importance of investing in new technologies to stay competitive.