UK watchdog eases on Microsoft over Activision deal
investmentweek.co.ukThe Competition and Markets Authority said it was open to “consider any proposals from Microsoft to restructure the transaction in a way that would address”.
Yesterday (11 July) a US federal judge rejected the Federal Trade Commission's attempt to halt the deal, with judge Jacqueline Scott Corley declaring it would not lessen the gaming market's competitiveness.
She said: «The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.»
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The FTC has until Friday to respond, but the ruling caused the UK regulator to shift its stance on the deal from a hard block to the tech giant changing its acquisition of Activision Blizzard to address its initial worries.
It said it was open to «consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns».
The CMA originally moved to obstruct the deal in April, on the grounds it was concerned the merger would hamper the growth of the cloud gaming market and lead to fewer choices for gamers.
The regulator was the first major institution to protest the deal since it was announced in 2022, with the EU approving the deal back in May this year.
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