The regulator said that the new deal will prevent Microsoft from stifling competition in cloud gaming and enable Ubisoft to provide Activision’s content under any business model, including through multigame subscription services
The UK CMA grants consent to wrap up Microsoft’s $68.7bn acquisition of Activision Blizzard. (Credit: w:User:Coolcaesar/Wikimedia Commons)
The UK Competition and Markets Authority (CMA) has granted consent to wrap up Microsoft’s previously announced $68.7bn acquisition of Activision Blizzard, excluding the latter’s cloud streaming rights outside of the European Economic Area (EEA).
The British competition watchdog said that the approval is conditional upon the completion of the sale of Activision Blizzard’s cloud streaming rights before the completion of the merger.
In August 2023, Microsoft submitted a restructured deal for the acquisition of Activision Blizzard to UK CMA.
Under the terms of the restructured deal, Microsoft will not acquire cloud rights for the existing PC and console games of Activision or new games released by the latter during the next 15 years. Instead, the rights will be sold to Ubisoft Entertainment.
The UK CMA said the new deal will prevent Microsoft from stifling competition in cloud gaming.
Besides, the regulator said it will enable Ubisoft to provide Activision’s content under any business model, including through multigame subscription services.
Furthermore, the deal will help to guarantee that cloud gaming providers will be able to use non-Windows operating systems for Activision content, resulting in lower costs and increased efficiency.
The UK CMA Chief Executive Sarah Cardell said: “We delivered a clear message to Microsoft that the deal would be blocked unless they comprehensively addressed our concerns and stuck to our guns on that.
“With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market.
“As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome.”
In April this year, the UK CMA blocked the all-cash deal between Microsoft and US-based video game holding company Activision over concerns that it would stifle the cloud gaming market.