Microsoft’s revised effort to get the £55bn takeover of Activision Blizzard past UK regulators appears to be on track for clearance.
The Competition and Markets Authority (CMA) had been a sole thorn in the side of the acquisition, rejecting the original terms on the grounds it had a duty to protect innovation and choice in the growing cloud gaming market.
But the watchdog launched a new inquiry last month when a new remedy was suggested that would see Call of Duty maker Activision’s cloud streaming rights outside of the EU being sold to Ubisoft Entertainment.
The CMA said on Friday that the offer “substantially addresses previous concerns”, adding that it should have been made earlier.
“While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues,” the regulator said in its statement.
Microsoft said it was “encouraged by this positive development in the CMA’s review process”.
Its vice chair and president, Brad Smith, added: “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline.
Microsoft has offered remedies to ensure that the terms of the sale are enforceable by the regulator.
The CMA is now consulting on the them before making a final decision.
Microsoft had hit out at the CMA’s decision to block the original deal, saying it suggested that the UK was closed to business.
It prompted a flurry of lobbying to get the decision overturned.
But CMA chief executive, Sarah Cardell, said of the drawn out process: “It would have been far better… if Microsoft had put forward this restructure during our original investigation.
“This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”
While the European Union agreed the terms of the original deal, US competition regulators were forced to abandon their bid to block the takeover.
