UK set to greenlight Microsoft’s acquisition of Activision Blizzard.

The $69 billion acquisition is poised to advance, addressing regulatory concerns.

Microsoft’s $69 billion purchase of Activision Blizzard, famous for games like Call of Duty and World of Warcraft, appears on track for UK competition regulator approval. The Competition and Markets Authority (CMA) initially opposed the record-breaking tech deal in April, fearing Microsoft’s dominance in the emerging cloud gaming sector.

This decision deeply frustrated Microsoft, marking the bleakest moment in its four decades of UK operation. However, a revised proposal was submitted, including the sale of cloud gaming rights beyond Europe to French competitor Ubisoft.

On Friday, the CMA announced that the sale of these rights “effectively addresses prior concerns and paves the way for approval of the deal.”

The CMA still expressed “limited remaining reservations” about potential loopholes, terminations, or non-enforcement in the sale of Activision’s cloud streaming rights. In response, Microsoft offered the CMA authority to enforce the terms, a move the regulator tentatively accepted.

Colin Raftery, CMA’s senior director of mergers, stated, “This represents a significantly altered agreement, ensuring robust independent control of vital games via cloud by Ubisoft. With additional safeguards, it maintains market structure and allows open competition in the future of cloud gaming.”

The CMA initiated a consultation on proposed solutions, concluding on October 6, before a final verdict on the deal’s approval.

The UK regulator appeared increasingly isolated, as EU counterparts and the US competition regulator approved the deal. On Friday, the CMA rebuked Microsoft for a delayed response to competition concerns during the investigation.

Microsoft aims for the CMA’s assessment before the October 18 acquisition agreement expiration. The company had already extended the deal deadline, surpassing its prior largest acquisition, the $26 billion LinkedIn takeover in 2016.