UK regulators have approved Microsoft’s revised offer for video game publisher Activision.
The Competition and Markets Authority (CMA) had previously blocked the original $69bn acquisition, but said on Friday that the updated bid — which excludes cloud streaming rights — “substantially addressed” its concerns.
Activision’s games include Call of Duty, World of Warcraft, Overwatch and Candy Crush.
In its original investigation, the CMA found that Microsoft already held a strong position in relation to cloud gaming and rejected the deal.
Under the new agreement French video game publisher Ubisoft, instead of Microsoft, will take over the rights to distribute Activision’s PC and console content over the cloud.
This will prevent Microsoft from “locking up competition” in cloud gaming as the market takes off, preserving competitive prices and services for UK customers, the CMA said.
Microsoft president Brad Smith, quoted by BBC News, said that the “final regulatory hurdle” had now been crossed for the company to complete the deal.
Despite clearing the acquisition, the regulator criticised Microsoft.
“Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA,” said CMA chief executive Sarah Cardell. “Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money.”
