The UK’s Competition and Markets Authority (CMA) has officially approved Microsoft’s $69 billion acquisition of gaming studio Activision Blizzard, clearing the way for the deal to be finalized.
The UK’s competition regulator originally blocked the deal but reversed its decision late last month after Microsoft submitted a restructured transaction for the CMA to review.
The remedies put forward by Microsoft included relinquishing control of cloud gaming rights for Activision’s content, removing its ability to limit access to Activision’s key content, or withholding those games from rivals. Furthermore, Microsoft proposed it will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft, before the deal is completed.
“With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market,” said Sarah Cardell, CEO of the CMA, in comments posted alongside the announcement. “As cloud gaming grows, this intervention will ensure people get more competitive prices, better services, and more choices. We are the only competition agency globally to have delivered this outcome.”
The acquisition agreement with Activision Blizzard was due to expire on October 18. If the deal had failed to clear its regulatory hurdles, Microsoft would have faced a termination bill of up to $3 billion, due to a clause in the agreement that requires the payment be made if the termination is caused by an “injunction arising from Antitrust Laws.”
CMA issues warning to businesses
In the wake of the CMA’s original decision being described as “bad for Britain” by Microsoft Vice Chair and President Brad Smith, Cardell sought to chastise Microsoft in her comments, adding businesses and their advisors “should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA.”
“Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money,” Cardell said, adding that any decisions made by the CMA are free from political influence and won’t be swayed by corporate lobbying.
“We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” Smith said in a statement posted on the social media platform X, formally known as Twitter.
FTC can still break apart the deal
Two days after the CMA provisionally approved the deal last month, the US Federal Trade Commission (FTC) revived its challenge to stop the acquisition from going ahead through its own administrative proceedings — essentially an in-house trial. Though…
2023-10-14 03:00:04
Original from www.computerworld.com