The CMA has approved Microsoft’s Activision acquisition deal
The UK’s competition regulator, the Competition and Markets Authority, has given its official approval of Microsoft’s proposed acquisition of Activision Blizzard, more than five months after it initially blocked the deal.
In news published today (October 13), the CMA has confirmed that it is satisfied with the latest version of the deal, which will see Microsoft sell the cloud streaming rights for current and new Activision games (released over the next 15 years) to Ubisoft if the deal goes through. This updated proposal was put forward to directly address the regulator’s initial concerns that the merger could harm competition in cloud gaming in the UK, and last month, the CMA gave its preliminary approval.
Today, Martin Coleman, the chair of the independent panel who reviewed the original proposal, reiterated the importance of cloud gaming, and stated that the merger “could have seriously undermined its potential development”. However, the amended deal is “better for competition, better for consumers and better for economic growth”.
Sarah Cardell, the CMA’s chief executive, said in a statement: “With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market. As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.”
However, Cardell also made it clear to any other businesses and advisors that “the tactics employed by Microsoft are no way to engage with the CMA”. She said: “Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a
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