The CMA approved the revised deal after Microsoft agreed to buy Activision without cloud gaming rights, addressing concerns about fair competition in the cloud gaming market.
Why it matters
The approval of the acquisition allows Microsoft to strengthen its position in the gaming industry and expand its presence in the cloud gaming market. It also signifies the growing importance of gaming as a lucrative sector in the technology industry.
What the papers say
The Times reports that the CMA's approval of the deal marks a major victory for Microsoft and Activision Blizzard, following a contentious legal process that lasted nearly two years. The NY Post highlights the ongoing fight by the Federal Trade Commission (FTC) to prevent the deal, despite the UK's approval. The Guardian emphasizes the CMA's criticism of Microsoft for dragging out the proceedings during the investigation. Axios notes that startups are not spending significant amounts on artificial intelligence (AI) tools yet, despite the current boom in AI technology.
How we got here
The original deal was blocked by the CMA in April due to concerns about fair competition in the cloud gaming market. Microsoft restructured the deal, agreeing to sell cloud gaming rights to Ubisoft instead. The revised deal was submitted for approval in August.
More on these topics
The Competition and Markets Authority is a non-ministerial government department in the United Kingdom, responsible for strengthening business competition and preventing and reducing anti-competitive activities.
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. The company was founded in July 2008 through the merger of Activision, Inc. and Vivendi Games.
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
Call of Duty is a first-person shooter video game franchise published by Activision. Starting out in 2003, it first focused on games set in World War II.
Bradford Lee Smith is an American attorney and technology executive currently serving as President of Microsoft, concurrently serving as chief legal officer.