The UK Competition and Markets Authority (CMA) has granted a deadline extension on Microsoft’s Activision Blizzard deal to Aug. 29. This comes after Microsoft submitted a new proposal claiming significant changes in circumstance.
In April, the CMA became the first major regulator to block the $69 billion acquisition of the popular “Call of Duty” maker, citing concerns about competition in the cloud gaming industry. The US Federal Trade Commission also opposes the deal but suffered a recent defeat in federal court when the court ruled in favor of Microsoft.
Despite this setback, the FTC has filed an emergency motion to an appeals court, seeking a temporary pause on the deal’s closure. However, the appeal faces obstacles. In the UK, the CMA’s final report typically concludes the matter, with companies only able to appeal to the Competition Appeal Tribunal (CAT).
Surprisingly, soon after the US federal court ruling, the CMA announced it was open to reevaluating a modified proposal. The following day, it revealed that a restructured deal could potentially address its concerns, pending a new investigation.
All parties involved have applied for the CAT to pause the ongoing appeals process. On Friday, the CMA extended the deadline for its final ruling by six weeks, until Aug. 29, though it remains committed to completing the process as quickly as possible.
According to a Bloomberg report, Microsoft and Activision are reportedly considering relinquishing some control of their cloud gaming business in Britain as a concession to the CMA’s concerns. Microsoft has declined to comment on its new proposal.
Microsoft President Brad Smith recently met with Britain’s finance minister, Jeremy Hunt, to discuss potential solutions. Smith expressed Microsoft’s willingness to meet regulatory requirements in the UK that go beyond those in the EU.
Gareth Mills, a partner at law firm Charles Russell Speechlys, believes the CMA must navigate a challenging situation. He suggests that while they cannot officially reopen a decision already made, that is essentially what they will attempt to do.
The CMA has not disclosed details about how the new investigation will be conducted, but a typical Phase 2 inquiry can take up to a year to complete.
(Additional reporting by Muvija M; editing by Jason Neely and Louise Heavens)
Credit: The Star : Tech Feed
