UK regulatory authorities have given the thumbs-up to Microsoft's renewed bid to purchase Activision Blizzard, the producer of Call of Duty.
The Competition and Markets Authority declared that the agreement resolves their worries, following the watchdog's thwarting of the initial $69bn (£59bn) offer in April.
The green light signals the end of a nearly two-year battle to secure the largest acquisition yet in the gaming world.
In spite of giving the okay to the acquisition, the CMA expressed disapproval with Microsoft's behaviour.
Following the thwarting of the acquisition earlier this year by the competition regulator, Microsoft's president Brad Smith lambasted the CMA's ruling which he claimed was "destined to fail Britain".
Sarah Cardell, the head of the CMA, declared: "Businesses and their advisors should be crystal-clear that the strategies employed by Microsoft are not acceptable ways to interact with the CMA.
Microsoft had the opportunity to reorganize during our initial examination, yet they persisted in proposing a set of actions that we explained would not be effective. Prolonging matters in this fashion only leads to a waste of time and funds.
Under the newly restructured agreement, Microsoft will give Ubisoft the right to deliver Activision's games on consoles and PCs through the cloud.
The CMA noted that the altered agreement would safeguard competitive costs within the gaming sector and offer more selection and better services.
Before it was greenlighted, it was not possible to finalise the acquisition, which involved Microsoft becoming the owner of Call of Duty, World of Warcraft, Overwatch and Candy Crush, on a worldwide level.
The European Union has already approved the purchase, but it has proved contentious and has been met with a variety of reactions from global regulators. Recently, an effort by the US antitrust regulator to put a halt to the acquisition was rejected by the judiciary.
Ms Cardell from the CMA mentioned that, in selling Activision's cloud streaming rights to Ubisoft, creators of Assassin's Creed, steps have been taken to prevent Microsoft from having complete control of the emerging market.
Mr Smith expressed appreciation for the CMA's thorough review and decision with regard to Microsoft.
He declared that the "last regulatory blockage" had been overcome for the technology enterprise to finalize the agreement, and a spokesperson for Activision Blizzard remarked that the agreed transaction was "fantastic news".
Microsoft has consented to the relocation of streaming rights for Activision games outside of the European Economic Area, namely EU countries plus Iceland, Liechtenstein, and Norway, to Ubisoft for a duration of 15 years.
Microsoft is optimistic that the acquisition will help increase sales of its Xbox console, as well as expand its Xbox Game Pass streaming service offerings, which provides members with access to a library of games for a subscription fee.
Microsoft's agreement with Activision has resulted in an in-house studio dedicated solely to producing mobile games, with the aim of capitalizing on the success of franchises like Candy Crush.
The acquisition symbolizes a tremendous transformation for the video game sector. It firmly evidences Microsoft's position as a leader in the video game world, much to the worry of Sony, the proprietor of the PlayStation console.
Sony has vociferously contested this arrangement out of apprehension that renowned Activision titles like Call of Duty could ultimately become Xbox-exclusive.
The PlayStation currently is the leader in sales compared to Microsoft's Xbox, however, all entertainment platforms need access to top-notch content for success.
Sony does not have a problem with purchasing successful studios. However, Microsoft understands that Activision Blizzard is in a category of its own.
After 8 years of waiting, Bethesda, now owned by Microsoft, finally released their highly-anticipated game Starfield in 2023 - but exclusively for Xbox and PC platforms.
After the CMA's initial refusal of Microsoft's bid for Activision, the two entities criticized the watchdog, contending that its decision had been at odds with the British government's aim of making the UK a desirable locale in which to found technology corporations.
Ms Cardell of the CMA stated to the BBC: "It was obvious that this deal should not be allowed to happen as it would have restricted competition in the UK gaming market - something that wouldn't have been beneficial for gamers."
We maintained our position. We had intended to argue for it in court, but Microsoft provided a substantial concession.
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