Competition and Markets Authority in UK extends Microsoft-Activision probe by six weeks
The ongoing debate regarding Microsoft’s potential acquisition of Activision Blizzard for $68.7 billion will continue for a while longer. The United Kingdom’s Competition and Markets Authority (CMA) has extended its review period by six weeks due to time constraints. This extension is necessary to thoroughly evaluate Microsoft’s comprehensive and intricate proposal supporting the merger. The CMA intends to reach a decision by August 29th, but it hopes to do so sooner if possible.
Microsoft first announced its plan to buy Activision Blizzard for $95 a share in January 2022. The CMA opened an investigation into the merger last fall, and in April it published an investigative report that said it would “significantly weaken competition” in 2022. cloud gaming services in the UK could face if Microsoft went ahead with the purchase . “An injunction would be the only effective and proportionate remedy for SLC and any adverse effects that result or may result from SLC,” the regulatory agency stated.
This latest development comes shortly after the CMA and Microsoft took a break from their legal battle in hopes of negotiating a compromise. “While we ultimately disagree with the CMA’s concerns, we are considering how the deal could be modified to address those concerns in a manner acceptable to the CMA,” Microsoft president Brad Smith said in a tweet in July.
Judge Jacqueline Scott Corley also recently denied the Federal Trade Commission’s (FTC) preliminary injunction in the United States, which would have led Microsoft and Activision Blizzard to abandon the deal. The FTC has since appealed to the Ninth Circuit Court of Appeals, seeking a halt to the deal.
