UK slaps additional restrictions on the Microsoft x Activision Blizzard King deal

Following the controversial rejection of the Activision Blizzard x Microsoft merger by the UK Competition and Markets Authority (CMA), the institution has placed additional restrictions on the deal going forward.

This restriction largely revolves around the new requirement for Microsoft to receive written consent from the CMA before acquiring an Interest in Activision or any of its subsidiaries, acquiring an Interest in a company that has an Interest in Activision, or have an option to acquire a stake in Activision. company mentioned above.

In basic terms, the CMA has required that any future move to acquire any aspect of Activision by Microsoft must first receive its explicit approval. The official provisional order where this was first announced states that this was done to stop any preemptive action by Activision or Microsoft.

This is yet another barrier standing in the way of the Microsoft x Activision Blizzard deal that has been looming over the industry in recent months. The CMA recently chose to challenge the deal in a decision that drew the ire of several senior staffers, including Microsoft’s Bobby Kotick and Brad Smith.

As it stands now, both Activision Blizzard and Microsoft have agreed to fight the CMA’s decision via appeal. This additional restriction is an attempt to halt any further movement in the acquisition until future follow-up decisions are made.

Whether or not the two gaming industry giants can convince the CMA to change its mind without significant changes to the deal itself remains an incomplete proposition. You should remember some of the lofty requirements that the CMA placed on Microsoft as part of its final decision earlier this year, including removing Blizzard and/or King from the deal.

The next major update expected on this (apart from a continued UK press tour from Mr Kotick) will likely come with an official appeal request. Once that happens, expect several more months of waiting before the CMA makes an absolute final decision. Something exciting!