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Microsoft-Activision Merger: UK Regulator Reviews Microsoft’s Restructured Deal with Ubisoft

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Microsoft-Activision Merger: The UK’s CMA has upheld its prohibition on Microsoft and Activision’s $68.7 billion merger. The authority highlighted concerns about cloud gaming monopolization as its rationale. According to PCMag, Microsoft offered a new strategy to address regulatory concerns after the loss. A strategic collaboration with Ubisoft will allow the IT giant to avoid CMA objections under this altered arrangement.

Ubisoft and Microsoft Announce Partnership

TechCrunch reports that Ubisoft would receive cloud streaming rights to all of Activision Blizzard’s current and future PC and console games for 15 years under the reworked contract.

Non-exclusive streaming rights in perpetuity across the European Economic Area (EEA). This is crucial to the agreement. Microsoft easily avoids the CMA’s strategic concerns about market dominance with this maneuver.

Microsoft’s President, Brad Smith, explained that “As a result of the agreement with Ubisoft, Microsoft believes that its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022.” Smith said that Microsoft has proposed a transaction to the CMA in 2022.

CMA Investigating Newly

Despite acknowledging that the modified deal is “substantially different,” the CMA has not approved it.

Sarah Cardell, CMA CEO, said, “This is not a green light.” “We will carefully and honestly evaluate the revised contract and its effect on competition, including third-party opinions.

“Our goal has not changed—any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice,” Cardell added. We have not altered our aim because we do not plan to.”

The regulator’s new Phase 1 review will assess the reorganized agreement’s complexity and its potential effects on cloud gaming competition.

Before making a decision, the CMA wants to hear from third parties.

A Closer Look at Ubisoft and Variable Attitudes

The presence of Ubisoft in this new deal shows a determined effort to work to balance the market and ensure that Microsoft does not overpower cloud gaming.

This strategic move innovates regulatory limits to promote healthy competition and let people play their favorite games in new ways.

Microsoft’s intention of buying Activision Blizzard by October 18 has not altered, and it matches the CMA’s assessment timetable.

The regulatory body’s decision contradicts the EU’s, which approved the mega-merger. Similarly, US courts barred the FTC from impeding the purchase. These different regulatory methods aggravate an already complex situation.

The reorganization plan and CMA examination will shape the gaming sector’s future. The plan’s unique structure promotes free competition and avoids excessive market intervention.

A Common Question

The UK regulator is reviewing Microsoft’s Microsoft-Activision Ubisoft merger. Why?

The UK regulator is probing Microsoft-Activision’s Ubisoft merger deal for monopolistic dominance. Microsoft buying Activision Blizzard might stifle competition and innovation in the gaming sector. Microsoft’s new strategy with Ubisoft encourages healthy competition and eases these concerns.

Despite the new setup’s reassurances, the CMA has started a Phase 1 investigation examining the modified agreement’s consequences on cloud gaming competition. The regulator is committed to gaming industry growth and dynamism. For fair and complete knowledge, it promotes third-party viewpoints in the review process.

How will Microsoft’s Ubisoft merger affect gaming competition?

The renegotiated Microsoft-Ubisoft partnership might alter gaming industry competition. Microsoft lets Ubisoft stream all of Activision Blizzard’s current and future titles, adding another major player to cloud gaming’s fast-growing business. Consumer offers may diversify, promoting innovation and reducing market monopolization.

However, this modified deal faces obstacles. Regulatory bodies like the CMA are worried and will investigate. The CMA’s use of third parties in the review process illustrates its severity and industrial impact. The outcome will influence Microsoft and the gaming industry.

The Microsoft-Activision merger and amended Ubisoft arrangement worry the UK regulator.

The UK CMA fears a gaming monopoly from Microsoft-Activision, even with the modified Ubisoft deal. The acquisition may give Microsoft commercial domination and restrict gaming innovation. The CMA worries about how the purchase would impact the fast-changing cloud gaming sector.

A complete Phase 1 CMA probe is ensuing from these problems. This investigation will assess how the changed structure may affect gaming market competition. CMA uses third-party views to ensure a complete and unbiased examination. The inquiry will impact implicated businesses and the gaming sector.


The Microsoft-Activision merger and amended Ubisoft agreement are crucial to the gaming industry. Global regulatory organizations are scrutinizing it because it might change the landscape. Some, including the UK’s CMA, have authorized the transaction, while others have begun extensive competition probes. This evaluation includes third-party perspectives, highlighting the situation’s complexity and breadth, contributing to the uncertainties surrounding this unprecedented accord.

The gaming industry’s future will be greatly impacted by these probes. The regulatory authorities’ conclusions might influence future mega-mergers in the industry. As the environment changes, the gaming industry’s stakes have never been greater. With these reviews ongoing, all eyes will be on the CMA’s eventual conclusion and industry responses.

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