Microsoft Strikes New Deal With UK CMA To Gain Go Ahead For Activision Acquisition

Today the UK’s Competition and Markets Authority (CMA) has revealed that a new deal proposed by Microsoft should resolve the concerns that were initially raised surrounding the deal.

Microsoft Acquisition To Soon Be Cleared

The CMA has shared on the gov.uk website that a new deal proposed by Microsoft should alleviate their concerns around competition in the cloud gaming space. This new restructured deal will see Activision cloud gaming rights sold to Ubisoft meaning that Microsoft will not have control and won’t be able to restrict access to these titles on cloud gaming platforms. The deal expects Ubisoft to offer Activision games both directly to consumers and all cloud gaming service providers as well as port games to more than just Microsoft operating systems. The CMA concludes that this new deal should “resolve those residual concerns” surrounding Cloud Gaming competition.

What Sarah Cardell, CEO of the CMA Had To Say

“The CMA’s position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved. In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns.

“It would have been far better, though, if Microsoft had put forward this restructure during our original investigation. This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”

The CMA has opened a consultation, until October 6th, on Microsoft’s proposed remedies where Microsoft will soon be given the go ahead to acquire Activision Blizzard.