United Kingdom regulator clears Microsoft’s proposed acquisition of Activision Blizzard

United Kingdom antitrust regulator Competition and Markets Authority has approved Microsoft’s proposed acquisition of Activision Blizzard after previously blocking the deal in April.

In its original investigation, Competition and Markets Authority found Microsoft already held a strong position in relation to cloud gaming and blocked the deal. By selling Activision Blizzard’s cloud streaming rights to Ubisoft, the distribution of “important, popular content” such as Call of Duty and Overwatch will not be under Microsoft’s control when it comes to cloud gaming.

Here is the regular’s full explanation of its decision to clear the deal:

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 European Economic Area) 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.

As a result of this concession, the Competition and Markets Authority agreed to look afresh at the deal and launched a new investigation in August. That investigation has completed today with the Competition and Markets Authority clearing this narrower transaction.

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

With Competition and Markets Authority’s approval, Microsoft now has all regulatory approvals necessary to officially complete the acquisition.