The UK CMA narrows its probe of Microsoft's $69B Activision Blizzard bid, saying new evidence “provisionally alleviates” concerns about UK game console supply
The CMA had previously identified potential harm to competition in UK gaming and sought remedies; this provisional change narrows one important theory of harm rather than ending the review. The earlier remedies process had put Microsoft’s ability to restrict rivals’ access to games at the center of the case.
The arc also shows where scrutiny was heading next: subsequent coverage identified cloud gaming as the CMA’s central remaining concern, and the eventual resolution involved a restructuring of certain cloud-gaming rights. That later approval underscores that easing console concerns was only one step toward clearance.
First-order effects
Microsoft and Activision face a less severe UK review on game-console supply, reducing the immediate need to remedy that specific concern.
The CMA’s investigation remains live, but its provisional finding concentrates the parties’ attention on the competition issues that were not alleviated.
Second-order effects
Rival platforms gain less leverage from a console-foreclosure argument, while cloud-gaming access becomes the more consequential competitive battleground for Microsoft’s commitments.
The case signals that evidence and proposed remedies can materially reshape a merger review’s scope, encouraging parties in similarly complex deals to target remedies at the regulator’s remaining theory of harm.
Third-order effects
If this pattern holds, game-industry merger review will increasingly assess control of distribution through cloud services, not solely ownership of console content and hardware.
The eventual use of a cloud-rights restructuring to secure approval points toward remedies that separate or constrain distribution rights when regulators are reluctant to accept broad behavioral assurances.
The trend: This is a data point in the shift from console-centric competition analysis toward scrutiny of cloud distribution and access to major game catalogs.
We appreciate the CMA's additional detailed and objective analysis. Its provisional update underscores a growing consensus by those with access to the most current data that this deal will create more competition in the console market, not less. https://www.forbes.com/...
Activision Blizzard shares are trading up ~5% on the NASDAQ this morning, after the CMA's announcement. Microsoft's proposed acquisition is for $95 per share, in an all-cash transaction valued at $68.7 billion https://twitter.com/...
The CMA is on the verge of approving Microsoft's acquisition of Activision. This same regulator rejected Meta buying Giphy. I'd love to read an analysis of what Microsoft has done right here and what Meta did wrong. https://techcrunch.com/...
Activision statement on CMA's updated provisional findings. “Sony's campaign to protect its dominance by blocking our merger can't overcome the facts” https://www.theverge.com/... https://twitter.com/...
Sony is clearly going to have to sign a deal with Microsoft over Call of Duty now. My full analysis on what this means here: https://www.theverge.com/...
Microsoft has responded to the CMA fixing its financial models and narrowing its investigation into the Activision Blizzard acquisition. The Xbox maker says it's looking forward to “working with the CMA to resolve any outstanding concerns.” https://www.theverge.com/... https://tw…
big news today for Microsoft's Activision Blizzard deal. The UK's CMA regulator has sided with Microsoft over Call of Duty on PlayStation concerns. It looks like Microsoft's $68.7 billion deal is a big step closer to clearing in the UK. Myanalysis here: https://www.theverge.com/.…
The CMA is changing its position on Microsoft's acquisition of ABK, looks like they are moving towards approval - https://www.gov.uk/... https://twitter.com/...
Breaking: The UK CMA has updated its provisional findings; the Microsoft & Activision Blizzard merger will not result in a substantial lessening of competition in relation to console gaming in the UK. This is a major step towards closing the acquisition. https://www.gov.uk/... ht…