October 13, 2023
2 mins read

Microsoft’s $68.7 Billion Activision Deal Cleared in UK

The UK’s CMA has greenlit Microsoft’s adjusted proposal addressing concerns about cloud gaming market dominance….reports Asian Lite News

The UK’s anti-trust watchdog on Friday cleared the restructured deal for Microsoft to buy gaming giant Activision Blizzard for $68.7 billion, after it concluded that the new deal would preserve competitive prices and better services.

The UK’s Competition and Markets Authority (CMA) accepted a restructured Microsoft’s proposal that addresses the CMA’s concerns about Microsoft dominating the cloud gaming market.

In August this year, Microsoft made a concession that would see Ubisoft, instead of Microsoft, buy Activision’s cloud gaming rights. 

“This new deal will put the cloud streaming rights (outside the EEA) for all of Activision’s PC and console content produced over the next 15 years in the hands of a strong and independent competitor with ambitious plans to offer new ways of accessing that content,” said the CMA in a statement.

The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers. 

It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services. 

It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency, the UK’s market regulator noted.

“We delivered a clear message to Microsoft that the deal would be blocked unless they comprehensively addressed our concerns and stuck to our guns on that,” said Sarah Cardell, Chief Executive of the CMA.

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,” Cardell added.  

In August, Microsoft submitted a restructured proposal to UK’s anti-trust watchdog for approval of its acquisition of Activision.

As part of the restructuring, Microsoft will transfer cloud gaming rights for current and new Activision Blizzard games to French video game publisher Ubisoft.

The sale of Activision’s cloud streaming rights to Ubisoft will prevent the distribution of important, popular 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, said the CMA.

“Cloud gaming is an important new way for gamers to access games and this deal could have seriously undermined its potential development. On that we, the European Commission and the US Federal Trade Commission are in full agreement,” said Martin Coleman, Chair of the Independent Panel who reviewed the original Microsoft deal.

ALSO READ: Microsoft Set to Debut AI Chip

Previous Story

Air India Express Welcomes 50 New Boeing 737 MAX Planes

Next Story

China Navigates Murky Waters in the Hamas-Israel Conflict

Latest from Business

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics

India Maps 8.52 MT Rare Earth Reserves

The Atomic Minerals Directorate for Exploration and Research (AMD) and the Geological Survey of India (GSI) are actively exploring and augmenting rare earth resources, while the GSI alone has added 482.6 million

‘India’s Digital Hub Ascends’

The event also featured discussions on the Quad Partnership for Cable Connectivity and Resilience, reiterating commitments made during the July 1 Quad Foreign Ministers’ Meeting India’s growing role as a key digital

India’s Job Market Surges

With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities India’s festive season this year is poised to create more
Go toTop

Don't Miss

British Indian actress grabs attention in ‘Red Notice’

Arya reprises the role of Interpol’s Inspector Urvashi Das, forever

‘Majority of public want ICC arrest warrants pursued’

The new UK government has overturned previous legal opposition to