Microsoft presents revised Activision Blizzard deal to UK regulator

By Al Mayadeen English
Source: News websites
22 Aug 2023 16:54

This comes as CMA expressed worries about Microsoft potentially dominating the cloud gaming sector if the takeover proceeded.

The Activision Blizzard Booth shown on June 13, 2023, during the Electronic Entertainment Expo in Los Angeles (AP)

Microsoft has submitted revised plans for its intended acquisition of game developer Activision Blizzard in an effort to gain approval from the UK's competition watchdog, which has previously blocked the $69 billion deal.

The UK's Competition and Markets Authority (CMA) had expressed worries about Microsoft potentially dominating the cloud gaming sector if the takeover proceeded. However, the new proposals from Microsoft involve relinquishing cloud rights outside of Europe for both existing and upcoming Activision games on consoles and desktop computers over the next 15 years.

These adjusted propositions aim to assuage the CMA's worries and reignite Microsoft's aspirations to finalize the acquisition. The CMA had previously halted Microsoft's plans in April due to concerns of unfair competition.

As per the updated plan, Microsoft will not be permitted to exclusively release Activision Blizzard games on its Xbox Cloud Gaming platform nor will it retain sole control over licensing agreements for competing services.

Ubisoft, a rival game developer based in France, is set to acquire the cloud streaming rights for Activision games outside of the European Economic Area prior to Microsoft's acquisition. This allows Ubisoft to license the content to any cloud gaming provider.

Despite these amendments, the CMA underlines that the deal is still pending final approval ("green light"). The CMA will conduct a thorough assessment of the revised terms and their potential effects on competition.

Bobby Kotick, CEO of Activision Blizzard, has commented that the changes in the deal, including the divestiture, do not significantly alter the situation. Both Microsoft and the CMA are optimistic that the revised terms will address the regulatory concerns and pave the way for a successful acquisition.