- After pausing any legal action and heading back to the negotiating table, the CMA will reach a decision regarding Microsoft’s Activision Blizzard deal in late August.
- The UK regulator has given itself a six-week extension on its investigation.
- The issue of cloud gaming is a sticking point of the deal, with Microsoft potentially having to divest it in the UK.
This week has been a busy one for anyone following Microsoft’s continued pursuit of Activision Blizzard. While the FTC in the US looks to appeal a loss in court, the UK’s Competition and Markets Authority (CMA) has paused any legal action and is in the early phase of negotiation with Microsoft over the particulars of the deal.
While the CMA is yet to reach a decision on the matter, it has provided a new timeframe, extending its investigation into the matter by six weeks. As such, the CMA says it will deliver a new report come 29th August 2023.
That date, however, is not set in stone, and should the investigation finish faster than the aforementioned six weeks, the CMA would bring its decision delivery date forward.
“The CMA considers that there is insufficient time remaining in the statutory period for full and proper consideration of Microsoft’s submission on the proposed Order,” it advised in a notice.
“As such, the Inquiry Group considers that there are special reasons to extend by six weeks under section 41A(2) of the Act the period for the discharge of its duty under section 41(2) of the Act. The revised period will therefore end on 29 August 2023. However, the Inquiry Group aims to discharge its duty as soon as possible and in advance of this date,” the regulator confirmed.
As for what Microsoft would need to change in order to get the deal pushed through in the UK, reports are suggesting that cloud gaming remains a sticking point. The tech giant may need to divest some of its interests in that segment in order to address any concerns that its role in the cloud gaming environment would significantly lessen competition.
Whether Microsoft would be willing to do so remains to be seen, but either way, it looks like the company would need to make significant changes to the ramifications of the deal if it wishes to get regulatory approval in the UK.
We will need to wait until next month before anything tangible comes to the fore.
