The UK’s antitrust regulator, the Competition Appeal Tribunal (CAT), has been granted a conditional two-month pause in its legal battle with Microsoft. This pause aims to address concerns raised by the Competition and Markets Authority (CMA) regarding Microsoft’s proposed acquisition of Activision Blizzard for $68.7 billion. Judge Marcus Smith from the CAT has requested evidence from the CMA justifying the adjournment application and detailing any new consultation process. The judge has temporarily halted the legal proceedings while awaiting this information, and the CMA is expected to submit the evidence by Thursday.
Microsoft appealed against the CMA’s concerns primarily related to cloud gaming. The CAT was scheduled to hear this appeal starting on July 28th. However, following the Federal Trade Commission’s decision to halt the acquisition in the US, the CMA announced its intention to delay the proceedings. All parties involved, including the CMA, Microsoft, and Activision, requested additional time, which the CAT granted.
During the Monday hearing, CMA lawyer David Bailey clarified that the FTC’s court loss did not influence the CMA’s decision to review a new proposal from Microsoft. Both Microsoft and the CMA expressed confidence that a restructured transaction could address the CMA’s concerns. However, Microsoft has not yet submitted an amended proposal to the CMA, despite the merger deadline of July 18th. It is unlikely that a resolution will be reached by then, and an extension of the current agreement or renegotiation of terms may be necessary. Alternatively, Activision could opt to walk away from the deal and receive a $3 billion breakup payment from Microsoft.
To address the CMA’s concerns, Microsoft may consider selling some cloud gaming rights in the UK. The company has already signed deals with third-party cloud gaming companies to offer its games on their platforms, which satisfied the European Union’s requirements. Meanwhile, the FTC is proceeding with its own evidentiary hearing on the acquisition, scheduled to begin on August 2nd. The agency originally sought a preliminary injunction to prevent the deal’s closure, but its attempt was unsuccessful.
With all parties involved seeking an amicable resolution, it is unlikely that Microsoft and Activision will close the merger by the initial deadline and attempt to find a workaround to continue operating in the UK. The final decision on the case by the CAT is expected by August 29th.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
