The Competition and Markets Authority (CMA) shocked many by denying Microsoft’s acquisition of Activision Blizzard in April due to worries that it may change the cloud gaming sector, resulting in less innovation and fewer options for players.
When the FTC filed an injunction in a federal court in June to stop Microsoft from concluding the transaction, Microsoft suffered yet another setback.
After winning the legal battle with the FTC, the CMA decided to renegotiate with Microsoft. The Redmond based software giant had declared that it would be altering the transaction to buy a more limited set of rights in order to gain approval. This includes giving Ubisoft the cloud streaming rights for all Activision Blizzard PC and console games launched in the ensuing fifteen years, with the exception of those released in the European Economic Area. The rights are perpetual, and the agreement becomes operative upon the completion of the merger.
The CMA stated on Friday that the sale of the cloud streaming rights mostly allayed its prior worries and provided a clear path for the deal to be approved.
According to a press release from the CMA, there are a few “residual concerns” that certain clauses in the transfer of Activision’s cloud streaming rights to Ubisoft would not be upheld, canceled, or evaded. To ensure that the CMA will uphold the conditions of the transfer of Activision’s rights to Ubisoft, Microsoft has proposed remedies.
Before making a final judgment, the government is currently consulting on the possible remedies. Prior to the deal’s extended October 18 deadline, it has initiated a comment period on Microsoft’s proposals that would go until October 6.
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