CMA agrees pause on Microsoft appeal after US court waves through Activision deal
The UK’s Competition and Markets Authority (CMA) has said it is willing to work with Microsoft over its planned acquisition of video game company Activision Blizzard, which could help end its legal battle with the firms over the deal.
It comes after a US judge yesterday handed Microsoft a victory by saying it would not stop its impending $69bn (£55bn) takeover.
The CMA previously blocked the acquisition, arguing it would give Microsoft an unfair advantage in the cloud computer game market.
But after the US ruling, the CMA said: “We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our final report.
“In order to be able to prioritise work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of litigation in the UK would be in the public interest and all parties have made a joint submission to the Competition Appeal Tribunal to this effect.”
Last month, the Federal Trade Commission (FTC) asked a court to block the $68.7bn (£54.7bn) deal, which it believed could harm competition in “multiple markets”.
But the San Francisco court judge rejected the regulator’s request, saying the FTC had not shown that the deal would “substantially lessen competition” in the gaming industry.
FTC spokesperson Douglas Farrar said the agency was “disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles.”
He added the FTC would be continuing to battle the court in order to “preserve competition and protect consumers.”
The FTC have until 14 July to appeal the court’s decision.