CMA’s Battle Against Microsoft Continues: UK’s Competition Watchdog Unfazed by FTC’s Verdict

The CMA maintains its position and warns that negotiations with Microsoft could trigger a new investigation…

The UK Competition and Markets Authority (CMA) is cautious about the prospect of a swift resolution to its concerns regarding Microsoft’s proposed acquisition of Activision Blizzard.

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Microsoft and UK regulators were quick to issue statements about their intention to pause their battle against Activision and negotiate after Microsoft won a key legal fight against the FTC yesterday.

However, the British regulator now says that Microsoft’s proposals may “prompt a fresh investigation into mergers.”

The CMA wants to return to negotiations

In a statement to The Verge, the UK regulator warns that discussions with Microsoft are still in the early stages:

“While merging parties do not have the opportunity to present new remedies once a final report has been issued, they may choose to restructure a deal, which can prompt a fresh investigation into the merger,” they explain.

The CMA initially blocked the deal earlier this year on cloud-related grounds, but both Microsoft and the CMA are now willing to negotiate following Tuesday’s decision by Judge Jacqueline Scott Corley.

CNBC reported yesterday that Microsoft and the CMA have agreed to a “minor divestiture” to address cloud gaming concerns. CNBC does not specify the nature of this divestiture, but it is likely to be UK-specific and related to Microsoft’s Xbox cloud gaming services in the region.

EU regulators also had concerns about cloud gaming but approved the deal earlier this year thanks to the 10-year licensing agreements that Microsoft offered to cloud gaming competitors.

The EU secured a key solution that includes a free license for consumers in EU countries, allowing them to stream all current and future Activision Blizzard games for PC and consoles through “any cloud gaming service of their choice” that holds a license.

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Author: Chema Carvajal Sarabia

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