The U.K.'s Competition and Markets Authority (CMA) has approved Microsoft (NASDAQ:MSFT)'s $68.7 billion acquisition of Activision on Friday, an acquisition that will position Microsoft as the third-largest gaming company globally. The approval comes with a condition to prevent market monopoly: Microsoft must transfer Activision's cloud-streaming rights outside the European Economic Area (EEA) to Ubisoft for 15 years. Within the EEA, both Microsoft and Ubisoft will share these rights non-exclusively.
The same day, the CMA also approved a deal allowing Ubisoft to acquire Activision's cloud gaming rights from Microsoft. This agreement will enable Ubisoft to stream all of Activision’s PC and console content, including well-known games like Call of Duty, Overwatch, and World of Warcraft, for 15 years. The deal also permits Ubisoft to offer Activision’s content under various business models, such as multigame subscription services, and enables non-Windows operating systems to run Activision games.
CMA Chief Executive Sarah Cardell and Martin Coleman, Chair of the Independent Panel, both highlighted the benefits of these arrangements for competition, consumers, and economic growth. The enforceability of the sale terms of Activision’s rights to Ubisoft is ensured through undertakings by Microsoft.
This move is seen as a significant step in maintaining a competitive landscape in the rapidly growing cloud gaming market. It also ensures consumer-friendly pricing and services in cloud gaming. Furthermore, Microsoft has pledged to keep Activision games on rival platforms including Nintendo, Sony (NYSE:SONY), and Steam for a decade.
Previously, the deal had received approval from the European Commission and was immune to blocking by the U.S.'s Federal Trade Commission.
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