UK Regulator Extends Deadline for Final Decision on Microsoft's Activision Blizzard Deal - News
by William D'Angelo , posted on 14 July 2023 / 3,575 Views
The the UK regulator, the Competition and Markets Authority (CMA), has extended its deadline to make its final order on Microsoft's Activision Blizzard acquisition.
The CMA was originally scheduled to release its final ruling by July 18, however, that has been pushed back until August 29. Although it does hope to reach a conclusion before this date.
"The CMA considers that there is insufficient time remaining in the statutory period for full and proper consideration of Microsoft’s submission on the proposed Order," reads the notice of extension by the CMA. "As such, the Inquiry Group considers that there are special reasons to extend by six weeks.
The CMA added, "The revised period will therefore end on 29 August 2023. However, the Inquiry Group aims to discharge its duty as soon as possible and in advance of this date."
It was reported yesterday that Microsoft and Activision Blizzard are considering giving up some control over cloud-gaming in the UK to appease the CMA. Microsoft might be willing to sell its cloud gaming rights in the UK to a telecommunications, gaming or internet-based computing company. One person said a private equity company might be interested.
The Competition and Markets Authority (CMA) in the UK in April blocked Microsoft's Activision Blizzard acquisition, however, Microsoft and Activision Blizzard has appealed the decision. The hearings for the appeal were set to start on July 24, however, the CMA and Microsoft have decided to pause litigation to work out a new deal.
CMA media officer Billy Proudlock earlier this week said discussions with Microsoft and Activision Blizzard are "at an early stage" and the two companies are considering how the transaction could be modified.
The reason the CMA blocked the deal in April was due to concerns with cloud gaming. The CMA is concerned the "deal would 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."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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There is zero chance that the CMA can stop this deal from closing. I suspect that once the US is wrapped up, microsoft will close in short order. The only way they're going to wait on the CMA is if they truly believe that they are going to get approval within this 6 week period. If they think CMA is going to keep throwing up roadblocks, they're just going to give them the middle finger and go ahead and close and deal with the aftermath.
The CMA knows this, and the CMA knows that they do not have the public behind them on this. They also know they don't have a lot of support from politicians on this position. So I don't think there's any chance that they're going to play chicken with Microsoft. Unless the US court does something to stop it, the CMA and MS are going to settle this thing in the next few days, so Microsoft can close the deal.
The CMA continues to be the real roadblock in this whole situation. Now the only question is will MS close or in an extension already in place with ABK. Next week should be fun.
I think they will. And just pay a fine if required.
It's not a one time fine. It's a continuous fine that they will have to pay until they start following the law.
Yes it is but overall, the cost of not closing will be much higher. Even if Activision wants to renegotiate; I suspect they will ask for more.
Would they have to pay a fine if litigation is still proceeding, and they keep ABK as a fully separate operating unit within Microsoft in good faith (which would allow them to un-do the acquisition if need be)? I thought fines were generally only levelled at companies that have a final judgement, and then don't abide by it?
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