United Kingdom antitrust regulator Competition and Markets Authority has just approved Microsoft’s proposal to acquire Activision Blizzard. The bit of information is a complete turn of events in favor of Microsoft as the same regulator previously blocked Microsoft’s proposed acquisition of Activision Blizzard last April due to cloud gaming concerns.
More details regarding the deal:
In August this year Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights. This new deal will put the cloud streaming rights (outside the European Economic Area) for all of Activision’s PC and console content produced over the next 15 years in the hands of a strong and independent competitor with ambitious plans to offer new ways of accessing that content.
As a result of this concession, the Competition and Markets Authority agreed to look afresh at the deal and launched a new investigation in August. That investigation has completed today with the Competition and Markets Authority clearing this narrower transaction.
The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for United Kingdom cloud gaming customers. It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services. It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.
This simply means that Microsoft now has all regulatory approvals necessary to proceed with the acquisition.
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