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Following Microsoft’s success in its case against the Federal Trade Commission, the Xbox owner has now submitted a new change of circumstances document to the Competition and Markets Authority (CMA) in the UK. With a number of new factors and concessions to be considered Microsoft is arguing that the proposed acquisition of Activision Blizzard should be reconsidered by the CMA.
The initial acquisition proposal was rejected by the CMA back in April 2023 on concerns that should the deal go through it could affect the growing cloud gaming market. Following this, the European Commission later approved the deal after Microsoft entered into agreements with a number of cloud streaming platforms such as Nvidia and Boosteroid. Alongside this, Microsoft also committed to the EU to open up Xbox and Activision Blizzard games’ cloud licensing access.
Microsoft is now arguing that the decision made by the CMA should be reviewed in light of their numerous cloud gaming agreements and the EU’s monitoring of them, alongside the recent agreement between Sony and Microsoft to keep Call of Duty on the PlayStation platform for the next 10 years. According to The Verge, Microsoft is also currently working on a final proposal to address the CMA’s concerns surrounding the cloud gaming market more directly. This could see Microsoft sell off its cloud gaming rights in the UK.
Microsoft’s document is heavily redacted so there is no up-to-date news about the 10-year agreement between Sony and Microsoft over access to Call of Duty. However, the CMA is looking for Microsoft competitors to submit any comments by August 4, 2023, and it will accept any final undertaking or make a final order before or on August 29, 2023. This news comes after Xbox and Activision Blizzard agreed to delay their merger deadline until October 18, 2023.
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