The amended bid from Microsoft to acquire Activision Blizzard has been accepted by UK regulators.
After blocking the first $69 billion (£59 billion) transaction in April, the Competition and Markets Authority said the new bid met its concerns.
Microsoft will give French video game publisher Ubisoft the rights to distribute Activision’s games on consoles and PCs via the cloud.
Despite its approval of the transaction, the CMA criticized Microsoft.
Microsoft President Brad Smith claimed the purchase was “bad for Britain” after the antitrust watchdog banned it in April.
“Businesses and their advisors should be in no doubt that Microsoft’s tactics are no way to engage with the CMA,” CMA chief executive Sarah Cardell said on Friday.
“Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money.”
According to the CMA, the updated agreement will “preserve competitive prices” in the gambling business while also providing greater choice and better services.
The purchase, which makes Microsoft the owner of Call of Duty, World of Warcraft, Overwatch, and Candy Crush, could not be finalized globally prior to approval.
It has been contentious and has gotten varied reactions from authorities around the world, but it has already been approved by European Union officials. The courts recently dismissed the US Competition Bureau’s request to halt the purchase.
However, Ms Cardell of the CMA stated that by selling Activision’s cloud streaming rights to Ubisoft, the maker of Assassin’s Creed, “we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market.”
Activision’s Approval
Microsoft, according to Mr Smith, is “grateful for the CMA’s thorough review and decision.”
He said the “final regulatory hurdle” had been cleared for the tech behemoth to close the acquisition, while an Activision Blizzard representative said the approval was “great news.”
Microsoft has agreed to transfer the rights to broadcast Activision games from the cloud to Ubisoft, a video game publisher, for 15 years outside the European Economic Area (EEA) under the restructured arrangement.
Microsoft remains optimistic that the acquisition would increase demand for its Xbox system and allow the company to add more titles to its Xbox Game Pass streaming service, in which members pay a subscription fee to access a catalog of cloud-based games.
The agreement represents a significant shift in the games business. It further solidifies Microsoft’s position as a video game behemoth, much to the chagrin of its primary rival Sony, owner of the PlayStation platform.
Sony has vehemently opposed this agreement, citing concerns that major Activision products such as Call of Duty could become Xbox exclusives in the future.
The PlayStation now outsells Microsoft’s Xbox, but like with all entertainment platforms, access to the best content is the key to success.
Sony is also not afraid to acquire successful studios. Activision Blizzard, on the other hand, is in a league of its own, and Microsoft is well aware of this.
Following eight years of development and considerable anticipation, another huge studio owned by Microsoft, Bethesda, released its new game Starfield in 2023 – but only on Xbox and PC.
Following the CMA’s rejection of Microsoft’s first attempt to acquire Activision, the two corporations lashed out at the regulator, claiming that its initial decision violated “the UK’s ambitions to become an attractive country to build technology businesses.”
Ms Cardell defended the CMA’s actions, telling BBC Today that the watchdog “held our ground” and was ready to defend the decision in court before Microsoft “came forward with a major concession.”
“When we take these decisions, whether it’s this decision on Microsoft or any other decision, we are looking to protect competition in the UK,” she said.
“That benefits consumers and that benefits businesses and it benefits the economy because competition is key to drive investment and innovation and growth.”
