Microsoft Sends Final Submission to CMA Regarding Activision Blizzard Acquisition

With the US Federal Trade Commission’s request for an injunction on the Microsoft acquisition of Activision Blizzard denied, approval from the UK’s Competition and Markets Authority (CMA) is the only obstacle left. The latter initially denied the deal, with an appeal set to occur on July 28th, but the Competition Appeal Tribunal (CAT) provided two months for both parties to resolve the same.

Microsoft has since provided a “final submission” to the CMA on why the acquisition should go through. The former is creating a proposal for a modified merger situation (MRS) “which would mean that the current approach in the FR and a potential final order would be superseded.”

That proposal is unknown, but the CMA responded in an open note, “Submissions under section 41(3) of the Act regarding material change of circumstance or special reasons are very rare. It is not a usual part of the CMA’s process during a remedies implementation period to consult on submissions received in response to a consultation on a proposed undertaking or order.

“However, in light of the guidance provided by the Competition Appeal Tribunal on this specific case, the Inquiry Group has decided it is appropriate to do so in this case.” Previously, the CMA denied the acquisition due to concerns over cloud gaming, which it felt Microsoft failed to address.

Following its success against the FTC, Microsoft signed a deal with Sony to keep Call of Duty on PlayStation for the next ten years (at the cost of other Activision Blizzard titles). Stay tuned for more details and updates in the coming months.