Friday, September 22, 2023

Xbox’s cloud gaming workaround worked: Activision Blizzard acquisition gets closer to UK CMA approval

Today, the UK's Competition and Markets Authority (CMA) announced that the new deal, offered by Microsoft, addresses its concerns regarding monopoly in cloud gaming in the UK. Last month, the CMA blocked Microsoft's proposed $69 billion acquisition of Activision Blizzard because it believed it would give the company an unfair advantage in the cloud gaming space.

The CMA's main focus was Activision Blizzard's major titles - such as Call of Duty, World of Warcraft, and Overwatch - which would be available exclusively on Microsoft's cloud gaming services. In response to those concerns, Microsoft submitted an alteration to the deal that would give Ubisoft control of the streaming rights for 15 years.

In a press release, the CMA said that while the new deal is satisfactory, the regulatory body remains concerned about a few remaining issues. In particular, the CMA has requested stronger commitments that certain provisions of the new deal would not be "circumvented, terminated, or not enforced."

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