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Comment by pipes | Hacker News Reader

How can the UK prevent two US companies from merging?

Not a lawyer (barrister?) but I’d guess it’s because both Microsoft and Activision have offices/legal entities in the UK as well as the US. I wonder if the decision could be routed by Activision simply closing those offices and exiting the UK? Not saying it should be routed, just openly speculating as an armchair not-lawyer/barrister.

it's not about offices, it's about competition.

if the companies' activities affect competition in the UK then the CMA is responsible.

the hint is in the name: Competition and Markets Authority

That’s not really the question. I could claim authority of you and your family. But what is the mechanism that enforces it? Why would you recognize that?

Why would Microsoft listen or care about the ruling? It’s because they operate in the UK. The CMA can’t just regulate companies that don’t operate in the UK.

I was wondering this too. Does this also affect whether they can do business there?

Welcome to globalisation, baby. Very few companies are in one country exclusively, and are thus subject to the laws of any country they operate in. That's why Google pulled out of China years ago, to not be subject to Chinese laws (even though they're a "US" company).

For reference, both Activision Blizzard and Microsoft have very significant presence outside of the US.

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