In an important growth the Competition and Markets Authority (CMA) appears to have cleared the final hurdle in Microsoft's acquisition of Activision. The CMA initially opposed this acquisition, which has been under examination for months, due to worries about its potential impact on the developing cloud gaming business.
Microsoft has taken decisive measures to address these concerns by modifying its proposed acquisition. In a strategic move, the tech giant agreed to sell cloud streaming rights to Ubisoft, a major participant in the game business. The decision prompted the CMA to launch a new merger investigation.
The CMA issued its initial decision on the matter today, signalling a potential breakthrough in the acquisition's progress. The regulatory authority admits that, while some remaining worries remain, Microsoft has given proactive solutions to resolve the issues. The CMA has tentatively decided that these solutions should be adequate to alleviate the remaining concerns.
In response to this initial decision, the CMA started a comment session that will last through October 6. The CMA will make a final decision when this consultation concludes. It is now expected that the CMA will approve the acquisition, barring any unexpected serious objections that may arise during this period.
In a tweet, Microsoft President and Vice Chair Brad Smith expressed confidence about the CMA's review process, saying, "We are encouraged by this positive development in the CMA's review process." We submitted remedies that we believe correctly answer the CMA's due concerns about cloud game streaming, and we will continue to seek to secure approval to close before the October 18 deadline."
Colin Raftery, Senior Director of Mergers and Phase 1 Decision Maker at the Competition and Markets Authority, expressed his pleasure with Microsoft's current proposal, stressing the significant contrasts between the new deal and the prior one. He highlighted that the updated deal keeps critical game distribution in the hands of Ubisoft, an independent supplier, rather than falling under Microsoft's control.
Raftery added, "With additional protections to make sure that the deal is properly implemented, this will maintain the structure of the market, enabling open competition to continue to shape the development of cloud gaming in the years to come, and giving UK gamers the opportunity to access Activision's games in many different ways, including through cloud-based multi-game subscription services."
As the acquisition's the future looks to be improving, industry analysts await the CMA's final decision, which could have significant consequences for the gaming industry's future.
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