UK regulator and Microsoft pause litigation in bid to reach agreement on Activision deal
The UK’s Competition and Markets Authority (CMA) has agreed to pause legal proceedings with Microsoft and Activision Blizzard with a view to reaching an agreement over the game companies’ proposed merger.
The announcement follows the news that Microsoft has been cleared to acquire Activision Blizzard in the United States after winning its court battle with antirust regulator the Federal Trade Commission.
“We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our Final Report,” a CMA spokesperson said.
“In order to be able to prioritise work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of litigation in the UK would be in the public interest and all parties have made a joint submission to the Competition Appeal Tribunal to this effect.”
In April, the CMA said it was preventing the $69 billion deal from going ahead due to concerns about its impact on the nascent cloud gaming market. It claimed its decision would stop the acquisition from happening globally.
Microsoft’s appeal against the competition watchdog’s decision was scheduled to be heard in a court case beginning on July 28.
For its part, Microsoft wants to try and push the deal through before the current merger agreement expires on July 18, after which Activision Blizzard could walk away with a $3 billion termination fee if an extension isn’t agreed.
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