The Competition and Markets Authority had blocked the $68.7 billion merger in April over allegations it would create a monopoly in the cloud gaming market in the U.K. Microsoft amended its deal and presented it to the CMA last month for approval. The new agreement would have Activision sell its cloud gaming rights to a rival company, Ubisoft, to ensure the company does not have a monopoly over the technology.
"In particular, the sale of Activision's cloud streaming rights to Ubisoft will prevent this important content — including games such as Call of Duty, Overwatch, and World of Warcraft — from coming under the control of Microsoft in relation to cloud gaming," the watchdog wrote.
The authority still has"limited residual concerns" about the deal related to whether certain parts of it can be"circumvented, terminated or not enforced" but believes Microsoft has offered remedies to ensure the sale of Activision Blizzard's cloud gaming rights to Ubisoft is enforceable.Microsoft and Activision Blizzard have until next month to finalize the acquisition in the U.K.
The U.S.-based Federal Trade Commission initially moved to block the Microsoft deal, pushing it to trial. Judge Jacqueline Scott Corley in San Francisco ruled in favor of Microsoft in July, arguing that the FTC"has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition." The agency withdrew its challenge in July but stated it intends to refile at a later date.