Microsoft's revised Call Of Duty deal gets green light from UK watchdog

13 October 2023 , 10:35

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Microsoft are set to take over Activision in a huge deal. (Image: PA Archive/PA Images)

The UK's competition watchdog, the Competition and Markets Authority (CMA), has given Microsoft the go-ahead to buy Call Of Duty creator Activision. This decision ends a six-month tussle between the CMA and Microsoft, who initially tried to block the deal in April.

Microsoft's revised offer, originally valued at £56.6 billion, will prevent the tech giant from monopolising the UK cloud gaming market, according to the CMA. The regulator believes this will maintain competitive prices for gamers and provide more options for consumers.

Ubisoft, the company behind Assassin's Creed, is now set to purchase Activision's cloud gaming rights. The CMA shared that Ubisoft has big plans to introduce new ways to access Activision's content, including through multi-game subscription services.

This also means that cloud gaming providers won't have to use Windows systems for Activision's gaming content, potentially reducing costs. However, the CMA criticised Microsoft for prolonging proceedings during its investigation into the merger.

Sarah Cardell, the boss of the Competition and Markets Authority (CMA), said: "With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market."

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"But businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA."

"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."

The CMA initially gave the thumbs down to the deal over worries that it would give Microsoft an unfair leg up in the cloud computer game market.

But it later put off its final decision so it could mull over Microsoft's argument that new developments mean the acquisition could go ahead.

A legal scrap between the two was paused in July after the watchdog said it was willing to negotiate, and after a US judge said it would not stop the takeover.

Brad Smith, the big cheese at Microsoft, said the group is "grateful" for the decision to approve the acquisition which he reckons will "benefit players and the gaming industry worldwide".

Mr Smith had described the initial decision as "probably the darkest day in our four decades in Britain", adding that it sent a message that the EU is a more favourable place to start a business than the UK.

The creators of World Of Warcraft and Candy Crush, Activision Blizzard, expressed their excitement about the future with Microsoft. They said: "The CMA's official approval is great news for our future with Microsoft, and we look forward to becoming part of the Xbox team."

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