Microsoft's Activision Blizzard acquisition gets preliminary approval from CMA

As Microsoft fights to secure its acquisition of Activision Blizzard, one of the major hang-ups on closing the deal has been pushback from UK regulators. The CMA has objected to the deal primarily due to the potential for Microsoft to monopolize the cloud gaming business. Microsoft restructured the deal to not purchase Activision’s cloud gaming rights, instead selling them to Ubisoft. The CMA has reviewed the new deal and shared a positive update, indicating a likely approval next month.

The CMA (Competition and Markets Authority) posted a press release today to give an update on the state of the Microsoft Activision Blizzard deal, which it blocked earlier this year. After Microsoft reworked and resubmitted the deal to the CMA in August, the regulating group appeared more likely to allow the deal to be completed.

Source: Activision Blizzard

In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision’s content, so would not be in a position to limit access to Activision’s key content to its own cloud gaming service or to withhold those games from rivals. Unlike the remedies the CMA previously rejected, Ubisoft will be free to offer Activision’s games both directly to consumers and to all cloud gaming service providers however it chooses, including for buy-to-play or multigame subscription services, or any new model for providing content that might emerge as the market develops. The deal with Ubisoft also requires Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested, addressing the other main shortcoming with the previous remedies package.

The CMA will issue its final decision on October 6. As things currently stand, it seems all but confirmed that the group will give a thumbs up to Microsoft’s industry-changing deal to acquire Activision Blizzard. We’ll be sure to share any potential updates on the situation between now and then.