The British competition authority (CMA) on Wednesday jeopardized the mega-merger between Microsoft and Activision Blizzard by announcing its decision to block the operation - the two companies announced to appeal in the aftermath.
The CMA's decision was "the darkest day in (Microsoft's) four decades in Britain," Smith told Britain, "but more than that, unfortunately, I think it's bad" for the country, he said.
"This shakes more than ever our confidence in future opportunities to develop a technology company in Britain," he continued, saying London "needs to look carefully at the role of the CMA".
The CMA had said it feared "reduced innovation and less choice for British players" in the growing market of cloud gaming, which offers users the opportunity to play stream, especially on their mobile phones.
"We want to create an environment in which a multitude of different companies can compete effectively, grow and innovate," CMA chief executive Sarah Cardell told the BBC on Thursday.
Concerns about the merger aren't limited to the UK: the EU has also opened an investigation into whether it would make Activision's games exclusive to Xbox. The European Commission must decide by 22 May.
The operation also raises fears across the Atlantic, where the US competition authority (FTC) launched in December proceedings to block it.
The U.K. market is smaller than the U.S. or the European Union, but if London's block is upheld on appeal, it could force Microsoft to abandon the deal.
The CMA had already won last year, after an appeal procedure, to force Meta, the parent company of Facebook, to sell the start-up of animated graphics Giphy.
© 2023 AFP