UK Regulator Approves Microsoft's Acquisition of Activision Blizzard

The UK's Competition and Markets Authority has granted Microsoft the necessary approval to acquire Activision Blizzard, following a modified deal to sell cloud gaming rights to Ubisoft. This move addresses concerns about competition in the cloud gaming space. The CMA believes the sale of these rights will prevent Microsoft from dominating the market, thereby preserving competitive prices and services for UK cloud gaming customers. The regulator has emphasized that Ubisoft will be allowed to distribute Activision's games under various cloud gaming business models, and other cloud gaming providers can use non-Windows operating systems for Activision's games. The approval is conditional on the completion of the Ubisoft divestment agreement before the acquisition. The CMA has stated that Microsoft has provided undertakings to ensure the terms of the sale are enforceable. Following a public consultation, the CMA found no significant concerns that would warrant withholding approval. The acquisition has been approved in the EU and over 40 other countries, but still faces resistance from the US Federal Trade Commission.