Examples Flashcards

1
Q

What happened initially with the Microsoft activation merger

A

Microsoft wanted to merge with activision to develop cloud gaming technology. The CMA said Microsoft would have too much power in a growing industry
Microsoft head said UK was a bad place to do business

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2
Q

Why was the head of the CMA made redundant

What is the macro & micro evaluation of this

A

The government said they are too much of a barrier to growth

Macro evaluation: supports the governments heavy focus on growth by favouring business mergers that would lead to growth over other objectives (e.g. consumer interest)

Micro evaluation: The fact that the head of the CMA was made redundant as he prevented too many mergers (specifically Microsoft and activation), ie, looking out for consumer interests, this suggests that the CMA was in fact strict enough on businesses and possibly too strict, and the fact that the government has advocated for less strict regulation could be a form of government failure as they are favouring business growth over the consumer interest.

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