Microsoft says EU more attractive after UK blocks deal

Microsoft has said that the European Union (EU) has become a more attractive destination for investment after the UK blocked its $8bn takeover of speech recognition firm Nuance Communications.

The tech giant had planned to acquire Nuance to bolster its artificial intelligence capabilities, but the UK government intervened on national security grounds.

Microsoft's president, Brad Smith, said that the company was disappointed by the decision, but that it would not deter its investment in Europe.

"We remain committed to Europe and will continue to invest in its people, technology and communities," Smith said.

He added that the EU's "strong data protection laws, skilled workforce and vibrant technology sector" made it an attractive destination for investment.

The UK's decision to block the deal has been criticised by some in the tech industry, who argue that it sends a negative message to investors.

However, others have praised the government for taking a tough stance on national security issues.

The UK's National Security and Investment Act, which came into force in January, gives the government greater powers to scrutinise and block foreign investment in sensitive sectors.

Microsoft's failed bid for Nuance is just the latest example of the UK government's increased scrutiny of foreign investment in the tech sector.

Earlier this year, the government blocked the sale of UK-based chip designer Arm to US firm Nvidia on similar grounds.

Despite these setbacks, Microsoft's commitment to Europe suggests that the region will continue to be a key destination for tech investment in the coming years.

https://www.lifetechnology.com/blogs/life-technology-technology-news/microsoft-says-eu-more-attractive-after-uk-blocks-deal

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