Microsoft’s acquisition of Activision Blizzard, the company behind “Call of Duty,” has been cleared by Britain’s antitrust regulator after concerns were addressed in a restructured deal. In August, Activision agreed to sell its streaming rights to Ubisoft Entertainment, and last month Microsoft provided remedies to ensure the regulator’s concerns were addressed.
The UK’s Competition and Markets Authority (CMA) stated, “The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers.”
In early 2022, Microsoft announced a $69 billion acquisition of Activision Blizzard, but the deal was blocked by the competition regulator in April. The regulator was concerned that Microsoft would gain excessive control over the emerging cloud gaming market.
The clearance of the deal by the CMA indicates that Microsoft’s restructured agreement has successfully addressed the previous concerns raised. By selling its streaming rights to Ubisoft Entertainment and implementing remedial measures, Microsoft has demonstrated its commitment to ensuring competition and market accessibility in the cloud gaming sector.
This clearance is significant as cloud gaming is becoming increasingly popular and is expected to continue its growth trajectory. With the deal now approved, Microsoft and Activision Blizzard can move forward with their plans and collaborations in the gaming industry.
Microsoft’s acquisition of Activision Blizzard is considered the largest gaming deal in history, and its approval by the CMA will certainly have implications for the future of the gaming industry in the UK.
The CMA’s decision ensures that competition in the cloud gaming market remains robust, preventing any dominant control by a single entity. This will ultimately benefit UK cloud gaming customers by preserving competitive prices and services.
Overall, the clearance of the Microsoft-Activision Blizzard deal represents a positive development for the gaming industry and sets a precedent for ensuring fair competition and consumer choice in emerging markets.
Reporting by Yadarisa Shabong in Bengaluru; Editing by Varun H K
