Microsoft is set to acquire Activision Blizzard, the company behind "Call of Duty" and "Candy Crush," in a $69 billion deal, following approval from British regulators who had initially blocked the acquisition over competition concerns.
The Competition and Markets Authority (CMA) has now cleared the deal, excluding cloud gaming rights, stating that it will preserve competitive pricing and enhance services.
Microsoft aimed to become the world's third-largest gaming company by revenue with this takeover.
While Microsoft dominates the cloud gaming market, the CMA initially feared the deal's impact on competition in this rapidly growing sector, where games are played virtually on various devices.
Under the revised agreement, Microsoft will not control the cloud gaming segment of Activision, which will instead be transferred to Ubisoft for 15 years.
This move ensures Microsoft doesn't have excessive influence in this vital market, promoting competitive pricing, better services, and greater choice.
CMA's CEO criticized Microsoft for prolonging the regulatory process, emphasizing the need for more efficient procedures.
Questions were raised about the rigidity of the UK's merger oversight system, while concerns over exclusivity of Activision games on Xbox were resolved.
The EU and the US have also cleared the acquisition, marking one of the tech industry's most substantial recent mergers.
