CMA warns of potential "new merger investigation" over Activision Blizzard deal

The UK's Competition and Markets Authority (CMA) has warned that Microsoft's Activision Blizzard deal could face a fresh merger investigation.

Following the news that Microsoft won its court battle against the Federal Trade Commission (FTC), Microsoft and Activision Blizzard were quick to announce that they had agreed with the CMA to pause legal proceedings so they could renegotiate the deal in an attempt to get it across the line. However, the CMA now says that new proposals from Microsoft could "lead to a new merger investigation."

The CMA's decision set out in its final report "still stands"

Xbox Activision Blizzard deal could face fresh merger investation, CMA warns

In a statement given to The Verge, a CMA spokesperson said, "Whilst merging parties don't have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation. Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis.

These discussions remain at an early stage and the nature and timing of next steps will be determined in due course. While both parties have requested a pause in Microsoft's appeal to allow these discussions to take place, the CMA decision set out in its final report still stands."

The CMA blocked Microsoft's Activision Blizzard deal back in April over concerns that the acquisition could "alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come." According to a new report from CNBC, Microsoft has now offered the regulator a "small and discrete divestiture" that the company hopes will address the CMA's concerns. It is currently unknown what this divestiture involves.

The other major regulator involved in the acquisition is the European Commission which previously gave Microsoft the green light to acquire Activision Blizzard after Microsoft made concessions surrounding cloud gaming.

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Written by Sean Carey

With a deep love for Xbox and achievements, Sean has committed to playing the best RPGs, racing games, and first-person shooters Xbox Game Pass and his precious free time will allow. Prior to joining TrueAchievements, Sean gained a degree in journalism from Solent University.