Washington, D.C. — The American Economic Liberties Project released the following statement after Microsoft CEO Brad Smith lambasted UK regulators for their decision to block Microsoft’s $69 billion acquisition of Activision Blizzard, warning the decision would likely undermine Microsoft’s willingness to grow its business — which includes cybersecurity support — in the United Kingdom.

“Microsoft CEO Brad Smith’s implied threat to the future of UK cybersecurity this morning should alarm policymakers worldwide,” said Matt Stoller, Director of Research at the American Economic Liberties Project. “In a 400+ page report, the UK Competition and Markets Authority meticulously detailed the illegality of Microsoft’s $69 billion acquisition of Activision Blizzard, echoing the FTC’s challenge of Microsoft’s largest deal ever. Rather than seriously acknowledge their findings, Smith has seen fit to blackmail a democratic nation, hoping to abuse Microsoft’s existing power to secure a deal that is fundamentally unlawful. This is a wakeup call. If policymakers fail to break Big Tech’s power now they will only ensure they are left evermore vulnerable later.”

Earlier this week, the UK Competition and Markets Authority announced it would block Microsoft’s acquisition of Activision-Blizzard. That move followed similar action and rationale from the U.S. Federal Trade Commission, which sued to block the deal late last year.

In response to the UK CMA’s decision, Brad Smith told the BBC this morning, “The impact of this decision is far broader than on Microsoft of this acquisition alone. Microsoft has been in the United Kingdom for 40 years and we play a vital role, not just supporting businesses and non-profits but even defending the nation from cyber-security threats. But this decision, I have to say is probably the darkest day, in our four decades in Britain. It does more to shake our confidence in the future of the opportunity to grow a technology business in Britain, than we’ve ever confronted before.”

Microsoft’s outburst also comes just months after Microsoft’s lawyers “accidentally” argued that the Federal Trade Commission was unconstitutional in the wake of the FTC’s filing to block the Microsoft-Activision Blizzard deal. It also follows similar threats that Big Tech monopolies have hurled at democratic countries after regulators and policymakers took steps to curtail their dominance. After Australia passed legislation targeting Meta’s monopoly power in February 2021, Meta threatened to restrict publishers and people in Australia from sharing or viewing Australian and international news. Earlier this year, Google made a similar threat to Canada, after their Parliament moved legislation that would rein in Google’s dominance over the digital advertising.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.