Microsoft to modify Activision Blizzard acquisition to address CMA concerns
Sign up for the GI Daily here to get the biggest news straight to your inbox
Microsoft is looking into changes it can make to the proposed acquisition of Activision Blizzard in order to win over the Competition and Markets Authority, the UK regulator that blocked the deal earlier this year.
The platform holder was due to face the CMA again in court as it argued against the latter's decision to the Competition Appeal Tribunal on July 24. However, both parties have now agreed to pause this process while Microsoft modifies its deal.
In a statement to GamesIndustry.biz, Microsoft's vice chair and president Brad Smith said: "After today's court decision in the US, our focus now turns back to the UK. While we ultimately disagree with the CMA’s concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA.
"In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect."
The court decision Smith refers to is the San Francisco judge ruling in Microsoft's favour after its recent legal clash with the Federal Trade Commission.
The FTC was attempting to temporarily block Microsoft from closing the Activision deal ahead of its own legal challenge, which is scheduled for August.
However, following the Judge's decision, Microsoft could complete the transaction ahead of its July 18 deadline, after which it needs to pay an extension fee to Activision Blizzard and renegotiate the deal.
The $68.7 billion deal needs approval in three key markets before it
Read more on gamesindustry.biz
