Microsoft has expressed disappointment over the decision of the UK Competition and Markets Authority (CMA) to block its $69bn acquisition of video game maker Activision Blizzard on the grounds of competition fears.

The company has warned that the UK’s move will make it less attractive to businesses and could have implications for its future investment decisions in the country. Vice chair and president, Brad Smith, has said that the European Union is now a more attractive place to start a business, noting that the CMA’s decision was “probably the darkest day” in Microsoft’s 40-year presence in Britain.

He added that he remained “optimistic” that EU regulators would view the promises that had been rejected by the CMA “as far more appropriate”.

ALSO READ: Some European countries have decided to send armored tanks to Ukraine

The acquisition, which would make Microsoft the world’s third biggest gaming firm after China’s Tencent and Japan’s PlayStation maker Sony, still awaits approval from the EU and United States. Some analysts have said that Britain’s block could signal “game over” for the proposed acquisition.

The CMA has defended its decision, stating that it shows the UK is open for business and supportive of competition. A spokesperson for UK Prime Minister Rishi Sunak has also dismissed concerns over the country’s tech sector, insisting that the UK remains an attractive destination for investment, including in the games market.

The decision has also been criticised by Activision and Microsoft, who have argued that it contradicts the UK’s assertion that it remains a hub for global tech after Brexit.