Microsoft may have beat the FTC in court, moving it closer to acquiring Activision Blizzard. But antitrust regulators in the UK are refusing to budge on clearing the deal.
According to Reuters, the UK’s Competition and Markets Authority won’t accept any “new remedies” from Microsoft as it tries to push through the acquisition. Instead, Redmond would need to officially restructure the deal. But even then, the UK’s CMA would need to formally investigate the new proposal, and it could take several months before a final decision is made.
"Whilst merging parties don’t have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation,” the regulator said.
The CMA added: “Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis. These discussions remain at an early stage and the nature and timing of next steps will be determined in due course.”
The regulator issued the statement after Microsoft President Brad Smith indicated the company is ready to negotiate with the UK regulator on the deal. "While we ultimately disagree with the CMA's concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA," he tweeted yesterday.
The CMA blocked the deal in April over concerns Microsoft could use Activision’s various franchises to corner the nascent, but growing cloud gaming market. In response, Microsoft offered “a small and discrete divestiture” on the deal to convince the CMA to approve the acquisition, according to CNBC.
Microsoft also may not be done with the FTC. Although a US court rejected the FTC's bid to secure a preliminary injunction against the deal, the agency could file an appeal. So far, the FTC has only said: “In the coming days we'll be announcing our next step to continue our fight to preserve competition and protect consumers.”