The Competition and Markets Authority has given its preliminary approval for Microsoft’s acquisition of Activision Blizzard. The sale of Activision’s cloud gaming rights to Ubisoft removes the CMA’s previous concerns and “opens the door to approval of the deal.”
Earlier this year, the British regulator blocked the acquisition out of fears that Microsoft would become too dominant in the cloud gaming market with Activision Blizzard’s titles in its portfolio. The revised deal significantly addresses the concerns raised by the CMA in April, as the sale of the rights to Ubisoft ensures that sufficient competition remains in the industry.
With the acquisition, Microsoft gains control of major franchises such as Call of Duty.
While the market watchdog seems satisfied, however, the decision is preliminary. Third-party feedback on Microsoft’s proposed measures is being gathered until Oct. 6. The final decision is expected by Oct. 18, which coincides with the extended deadline of the $68.7 billion transaction.
