The antitrust regulator in Britain has regained control of Microsoft’s Activision Blizzard deal following an adjournment granted by an appeals court. The UK’s reasons for reconsidering its block on the US software giant’s takeover have now been published by the Competition and Markets Authority (CMA). Microsoft has presented arguments to the CMA, hoping to win approval for its acquisition of Call of Duty maker Activision. Initially blocked in April due to concerns about competition in the cloud gaming market, the deal was reopened by the CMA after facing opposition from regulators worldwide.
The CMA stated that it expects to reach a new provisional decision on the restructured deal in the week beginning August 7. Microsoft’s argument for granting approval is based on the binding commitments it made to the European Union after the deal was blocked by Britain. These commitments ensure that Activision games can be streamed for the next ten years after the merger takes place. Microsoft has also entered into agreements with Nvidia, Boosteroid, and Ubitus and plans to establish a monitoring and enforcement regime to address the CMA’s concerns.
In addition, Microsoft argued that the CMA’s proposed block extends beyond the necessary scope for addressing cloud gaming concerns, such as by including Activision Blizzard’s King unit, which focuses on mobile device games like Candy Crush Saga. The CMA acknowledged Microsoft’s view that its recent licensing deal with Sony represented another significant change of circumstance or special reason.
Regarding the failure of US authorities to block the deal in their courts, the CMA dismissed it as “irrelevant and immaterial” to their decision to reconsider the deal. The Competition Appeal Tribunal in Britain has provisionally approved the adjournment, and the formal approval was granted on Friday.
In summary, Microsoft is making arguments to the CMA in order to gain approval for its Activision Blizzard deal. The company’s binding commitments to the European Union, along with agreements with other entities, and a proposed monitoring and enforcement regime, are presented as reasons why the deal should go ahead. The CMA will reach a new provisional decision soon.
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