Microsoft is acknowledging the concerns raised by U.K. regulators regarding their proposed takeover of video game giant Activision Blizzard. The tech giant has stated that it has made efforts to address these concerns in a new proposal submitted to the regulators.
This comes after Microsoft’s initial proposal was rejected by the U.K.’s Competition and Markets Authority (CMA). The regulatory body will now investigate the new proposal, with a decision deadline set for October 18th.
Brad Smith, Microsoft’s vice-chairman and president, has emphasized that it is now up to the regulators to determine if the path is clear for the takeover. He also clarified that Microsoft has not dismissed or downplayed the regulatory concerns but has instead worked to address them in order to advance competition and eliminate anti-competitive concerns.
Under the terms of the new deal, Microsoft will not acquire cloud rights for existing Activision PC and console games, as well as any new games released by Activision for the next 15 years. These rights will instead be acquired by French gaming publisher Ubisoft, before Microsoft’s acquisition of Activision takes place.
The role played by the U.K.’s CMA is crucial in deciding whether the takeover can proceed. With concerns about competition and anti-competitive practices in the gaming industry, the regulatory body is tasked with ensuring a fair and level playing field for all market participants.
Microsoft’s acquisition of Activision would have significant implications for the gaming industry, as it would bring together two major players in the field. The outcome of the CMA’s investigation will be closely watched by industry insiders and gamers alike, as it will shape the future landscape of the gaming market.
Ultimately, it will be up to the U.K. regulators to determine whether Microsoft’s new proposal adequately addresses their concerns and whether the takeover can move forward. The deadline for a decision is fast approaching, and all eyes will be on the CMA as they make their ruling.
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