microsoft activision deal uk cma possible block
Image: Activision Blizzard

Microsoft Activision Deal Facing Tough Challenge in UK – Report

Recent rumors have suggested that the Microsoft Activision deal hearing that took place in Brussels last month may have partially swayed the EU, but it looks like U.K.’s Competition and Markets Authority (CMA) remains skeptical. According to a new report, the CMA is “prepared to diverge” from its European counterpart.

Why CMA’s approval is crucial for the Microsoft Activision deal

Equity Report, a news site dedicated to global financial markets and merger activities, claims in a paywalled article that the CMA is not going to be influenced by the European Commission’s (EC) decision and wouldn’t hesitate to diverge. Microsoft has already said that the remedies proposed by the CMA, which includes offloading Call of Duty, are unacceptable.

Should the CMA decide to block the merger, it’ll certainly spell doom for the deal, though it’s unclear if Microsoft and Activision Blizzard have a backup plan. Unlike some regulators around the globe, the CMA is an independent body whose decisions cannot merely be overruled via courts or easily appealed. It is our understanding that CMA’s approval is required for the deal to go through.

Microsoft has certainly sensed that the CMA remains its biggest roadblock. The company resorted to taking out full-page ads in British newspapers, but that’s unlikely to impress the regulator.

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