Back in April, the U.K.’s Competition and Markets Authority (CMA) blocked Microsoft’s proposed $68.7 billion deal to buy video games giant Activision Blizzard. The hold-up was due to concerns that the deal would impact competition in the cloud gaming market.
Microsoft appealed the decision, saying the original deal’s blockage was no longer appropriate in light of events such as the European Commission approval of the deal, and the “Call of Duty” licensing deal agreed to between Sony and Microsoft.
The CMA reviewed the appeal, declined it, and on Thursday last week gave a final order prohibiting the original deal on a worldwide basis.
Now, Microsoft and Activision have agreed to a new, restructured deal. Under this, Microsoft won’t acquire cloud rights for existing Activision PC and console games.
In addition, it also won’t acquire cloud rights for new games released by Activision during the next 15 years (excluding the European Economic Area).
Instead, the rights will be divested to rival Ubisoft prior to Microsoft’s acquisition of Activision – thus allowing the licensing out of Activision’s content to any cloud gaming provider. The new deal has been submitted to the CMA to review in a new investigation. CMA chief Sarah Cardell says in a statement:
“We will now consider this deal under a new phase 1 investigation. This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments. Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”
The deadline for a decision on this new deal is now reportedly set to be October 18th.
Source: Variety
