UK CMA "Opens the Door" to Microsoft/Activision Approval

The UK CMA announces that while it has "identified limited residual concerns with the new deal," the regulatory agency says that proposed changes to the Microsoft/Activision merger substantially address the concerns that caused it to previously block the deal. The changes address concerns about Microsoft's hegemony in the streaming space by selling Activision's streaming rights to Ubisoft. The CMA says this "opens the door" to clearing this final regulatory hurdle holding up the deal:
While the restructured deal is materially different to the previous transaction and substantially addresses most concerns, the CMA has limited residual concerns that certain provisions in the sale of Activision’s cloud streaming rights to Ubisoft could be circumvented, terminated, or not enforced.

To address these concerns, Microsoft has offered remedies to ensure that the terms of the sale of Activision’s rights to Ubisoft are enforceable by the CMA. The CMA has provisionally concluded that this additional protection should resolve those residual concerns.

The CMA has now opened a consultation, until 6 October, on Microsoft’s proposed remedies.