Microsoft's Activision Blizzard bid provisionally approved by UK regulator
Revised deal has addressed concerns, CMA says.
In a positive development for Microsoft, the UK's Competition and Markets Authority (CMA) has "provisionally concluded" the company's revised deal to purchase Activision Blizzard will be enough to grant approval.
Back in April, the CMA made the shock decision to block Microsoft's proposed deal to acquire the Call of Duty maker. At this time, the regulatory body cited concerns relating to the cloud gaming sector, stating that the deal risked "stifling competition in this growing market".
In August, Microsoft submitted a revised proposal in a bid to appease the regulator, saying it would now sell the streaming rights for all Activision Blizzard games released in the next 15 years to Ubisoft should the new deal be accepted.
In a press release earlier today, the CMA stated while it had "identified limited residual concerns" with the proposed new deal, it believed Microsoft has taken steps to address those initial issues raised.
The CMA said it believes this revision "makes important changes that substantially address the concerns it set out in relation to the original transaction earlier this year".
Said the CMA: "The new deal instead results in the cloud streaming rights for Activision's games being transferred to an independent player, Ubisoft, maintaining open competition as the market for cloud gaming develops over the coming years.
"While the restructured deal is materially different to the previous transaction and substantially addresses most concerns, the CMA has limited residual concerns that certain provisions in the sale of Activision's cloud streaming rights to Ubisoft could be circumvented, terminated, or not enforced."
Microsoft told the CMA it will provide remedies to "ensure that the terms of the sale of Activision's rights to Ubisoft are enforceable", with the regulator stating this additional protection has appeased any of its lingering concerns.
The CMA will now "[consult] on the remedies" over the next two weeks until 6th October, before it announces its final decision.
"The CMA's position has been consistent throughout - this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved," CEO of the CMA Sarah Cardell said today. "In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns."
Meanwhile, in a statement provided to Eurogamer, Microsoft vice chair and president Brad Smith said the company was "encouraged" by today's development.
"We presented solutions that we believe fully address the CMA's remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the 18th October deadline."
Eurogamer will keep you updated with all future developments.