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UK regulator seeks public input on Microsoft-Activision deal

The CMA called for anyone wishing to comment on the new version of Microsoft's takeover of Activision Blizzard to do so by August 4
The CMA called for anyone wishing to comment on the new version of Microsoft's takeover of Activision Blizzard to do so by August 4

The UK competition regulator has today called for public responses on whether Microsoft's $69 billion takeover of Activision Blizzard, maker of video game "Call of Duty", should be cleared ahead of a final decision by August 29.

Activision Blizzard makes the popular video game "Call of Duty"

Microsoft says the deal, which the Competition and Markets Authority (CMA) blocked in April, should be revisited given legally-binding commitments to the European Commission and a licensing deal with Sony.

The US software giant said, in arguments published today, that its agreements that Nvidia, Boosteroid and Ubitus can licence Activision games for a decade after the merger have already improved competition in the cloud gaming market.

Microsoft also said any breach of its commitments would mean European approval would no longer be valid.

A breach would also put it at risk of fines of up to 10% of its worldwide turnover, which would amount to $19.8 billion if based on its 2022 turnover.

Its deal with Sony to keep "Call of Duty" on its PlayStation console for a decade is also significant in terms of the impact of the Activision deal and "addresses the primary concern of the most outspoken opponent of the merger," Microsoft said.

The CMA called for anyone wishing to comment on the new version of Microsoft's takeover to do so by August 4. It said it is aiming to make a final decision on the deal by August 29.

A court involved in the case had already published Microsoft's argument that the binding commitments accepted by the European Commission shortly after Britain blocked the deal had changed the situation.

Microsoft's appeal against the CMA's original decision was put on hold earlier this month to give the parties more time to resolve the dispute.

The pause followed the US Federal Trade Commission's (FTC) unsuccessful attempt to temporarily halt the deal.

Microsoft said that evidence that emerged in that case, which the FTC has since dropped, also bolstered its case the deal should go ahead.