UK’s CMA confirms decision to block Microsoft-Activision but opens fresh probe of restructured deal proposal

techcrunch.com:

The UK’s antitrust regulator has confirmed its April decision to block the $68.7BN Microsoft-Activision gaming mega-merger — rejecting arguments by Microsoft that it should overturn its original prohibition because of developments since the original decision. However in a simultaneous announcement today the Competition and Markets Authority (CMA) has opened a new investigation into a restructured proposal Microsoft has submitted for review.

Under the restructured proposal the tech giant would not acquire the cloud streaming rights to all current and future Activision games released during the next 15 years (excluding in the European Economic Area (EEA)). Instead the cloud streaming rights will be divested to Ubisoft prior to Microsoft’s acquisition of Activision.

In a statement Sarah Cardell, the CMA’s chief executive, described the revised proposal as “substantially different” compared to the deal the regulator has rejected:

Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. As part of this new deal, Activision’s cloud streaming rights outside of the EEA will be sold to a rival, Ubisoft, who will be able to license out Activision’s content to any cloud gaming provider. This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services. We will now consider this deal under a new Phase 1 investigation.

This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments. Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming