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Microsoft’s Activision Deal Gets UK Regulator Nod

Microsoft's deal with Activision nears UK approval.

In a turn of events the Competition and Markets Authority (CMA), in the UK has expressed a view towards Microsofts revised proposal to acquire Activision Blizzard. This year there were concerns raised by the CMA about competition suppression in the rapidly growing cloud gaming industry.

Back in April there was a wave of shock when the CMA decided to put a hold on Microsofts plans to acquire the known creator of Call of Duty. The regulatory body had worries that this acquisition could hinder competition and growth within the cloud gaming sector.

However Microsoft showed its commitment to the Microsoft’s Activision by presenting a revised proposal in August. The tech giant offered a solution to address the regulators concerns by suggesting they would sell streaming rights for all Activision Blizzard games for the 15 years to Ubisoft under certain conditions.

Microsoft's Activision Deal

Today the CMA issued a statement indicating a change in its position. While there are still some ” concerns” about the revised deal the regulatory body appreciates Microsofts proactive approach, in addressing initial issues. The CMA highlights how significant this revised agreement is as it ensures that Activisions cloud streaming rights will be transferred to Ubisoft thus maintaining competition as cloud gaming continues to evolve.

However the CMA raised some concerns regarding the enforceability of provisions, in the sale of Activisions streaming rights to Ubisoft. In response Microsoft assured the CMA that they will take measures to ensure that the terms of the sale are legally binding.

Sarah Cardell, CEO of the CMA commented on this development. Emphasized their commitment to promoting competition in cloud gaming. She appreciated Microsofts efforts to address the CMAs concerns by restructuring the deal.

Brad Smith, vice chair and president of Microsoft expressed optimism about these developments. Stated that they are hopeful to obtain approval before the deadline on October 18th. As we approach the decision gamers, around the world eagerly anticipate the outcome of Microsoft’s Activision deal.


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