Microsoft and Activision Blizzard Deal Receives Preliminary Approval from CMA
After months of discussion and review, Microsoft's acquisition of Activision Blizzard has received preliminary approval from the UK's Competition and Markets Authority (CMA). The CMA initially rejected the deal in May 2023, citing concerns about competition in the cloud gaming market. However, the CMA has now confirmed on its official website that the sales of Blizzard's cloud gaming rights to Ubisoft have addressed these concerns. As a result, the deal has been given an early nod by the CMA.
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In an earlier block of Microsoft's $69 billion acquisition of Activision Blizzard, the CMA expressed worry about the potential impact on competition in UK cloud gaming. Microsoft submitted a restructuring deal in August to address these concerns. The new deal specifies that Microsoft will not purchase the cloud gaming rights held by Activision Blizzard. Instead, these rights will be sold to Ubisoft, an unrelated company, and the deal with Ubisoft will be completed prior to Microsoft's deal with Blizzard.
Phones LTD Offers Samsung S23 Ultra EE Deals with Complimentary Galaxy Watch5The CMA has praised this new deal, stating that it significantly improves upon the original proposal. By selling the cloud gaming rights to Ubisoft, Microsoft's control over certain important content, such as popular games like Call of Duty, Overwatch, and World of Warcraft, will be reduced. The CMA believes that this reduction in Microsoft's powers will help prevent any stifling of competition.
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In order to ensure enforceability of the terms between Activision Blizzard and Ubisoft, Microsoft has provided remedies that address the concerns raised by the CMA. The CMA has provisionally concluded that these remedies, combined with the sale of rights to Ubisoft, should resolve the competition concerns.
The CMA is currently meeting to discuss Microsoft's planned remedy steps, with these meetings scheduled to run until October 6. While regulatory agencies in other regions have already approved the acquisition, including US agencies, the CMA's approval is still pending.
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