The U.K. Competition and Markets Authority has granted a delay until August 29 to review Microsoft's acquisition of Activision Blizzard, after previously attempting to block the $69-billion transaction.The agency has been resolute in its opposition to the purchase and the additional time will let it assess the plans issued by Microsoft and Activision Blizzard to address its issues.
The U.K. Competition and Markets Authority (CMA) on Friday announced that it was extending the deadline for its review of Microsoft's proposed takeover of video game publisher Activision Blizzard by six weeks. The watchdog stated it needed more time to examine the parties' proposals in order to address its concerns after a prior effort to block the deal was halted. The new time period set by the CMA will end on 29 August 2023.
The British regulator has been notably resistant to Microsoft's $69-billion acquisition of Activision Blizzard, previously taking steps to try to block the transaction due to worries about competition in the cloud gaming sector. Nevertheless, the CMA recently exhibited a more conciliatory attitude, especially after the U.S. Federal Trade Commission failed to prevent the merger.
The CMA spoke to CNBC on Tuesday to express that they are willing to examine any proposals Microsoft presents to modify the transaction in order to satisfy the worries mentioned in their Final Report. The CMA's primary issue is that Microsoft may make Activision titles exclusive to their own console, as they are attempting to breakthrough into the expanding cloud gaming industry. Microsoft has already proposed several compromises to the CMA, including granting licenses for some of Activision and Microsoft's games to other cloud gaming providers, however the CMA chose not to accept them because they were difficult to implement and wouldn't guarantee fair competition in the cloud gaming market. Microsoft and Activision may have to offer more ambitious plans to settle the CMA's qualms, such as strengthened licences or possibly the divestment of Microsoft's cloud gaming business in the U.K. In February, the CMA put forward their own suggestions for remedies, which incorporated the sale of the unit belonging to the famous game Call of Duty and separation of some of the Activision Blizzard business, but Microsoft declared this an impossibility. On Friday, Bloomberg reported that Microsoft could be preparing to part with some of its cloud-based game rights in the U.K. to content other firms and soothe the CMA. The deal has seen objection in the U.S., yet appeared to win support in the country earlier this week after the U.S. District Court for the Northern District of California curbed the petition for a preliminary injunction, which would have delayed the transaction's completion. The U.S. Federal Trade Commission on Wednesday petitioned to challenge the ruling.
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