The UK disputed criticism by Microsoft Corp. after the country’s antitrust watchdog blocked a proposed $69 billion deal for Activision Blizzard Inc.

Prime Minister Rishi Sunak’s spokesman, Max Blain, told reporters that Microsoft President Brad Smith was misguided in saying that the decision to block the deal was “bad for Britain.” Smith spoke earlier to the BBC, criticizing the move by the UK’s Competition and Markets Authority to intervene in the blockbuster gaming deal.

The UK games market is rapidly growing, and “doubled in size over the past decade,” Blain told reporters Thursday, valuing the industry’s contribution to Britain at £7 billion ($8.73 billion) in 2022. Last year, the UK became the third country in the world to have its tech sector valued at $1 trillion, Blain said.

“The UK will continue to engage pro-actively with Microsoft,” Blain said.

The CMA blocked the deal on Wednesday, citing competition concerns. “Preventing the development of entrenched market power in the first place is the most effective way to safeguard competition,” Sarah Cardell, the CMA’s chief executive officer, said.

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