Microsoft Submits “Change of Circumstances” to CMA Over Its Acquisition of Activision Blizzard

Microsoft has just sent a new submission to the UK’s regulatory authority, the CMA, where the company cites various “material change of circumstances” and special reasons to argue that the CMA should make a new decision and let its merger with Activision Blizzard close.

For those who are unaware, CMA blocked the $69 billion merger back in April. However, since then, Microsoft has won over the EU regulators and has defeated the FTC in federal court. Apart from the regulators, Microsoft has signed a binding agreement with the biggest opposition of the merger, Sony, where they agree to provide Call of Duty on PlayStation consoles for at least 10 years.

Therefore, Microsoft’s submission to the CMA raises all three development points to try to convince the CMA. The three development points are:

1. Microsoft’s agreement with the European Commission on enforcing the various cloud agreements they signed.
2. Microsoft’s agreement with Sony.
3. Fresh material from the FTC case that “undermines the (CMA’s) conclusions.”

Simultaneously, the gaming giant is working on a final proposal to modify the merger agreements which address the CMA’s concerns more directly. Reportedly, this involves Microsoft selling off its cloud gaming rights in the United Kingdom. The heavily redacted document reads:

In addition, as the CMA is aware from its confidential discussions with the Parties, Microsoft is in the advanced stages of putting forward a proposal to modify the relevant merger situation (RMS) that the FR addressed.

We should probably get more details on Microsoft’s modified final proposal in the following weeks, as the CMA’s deadline to publish the new final report is August 29, which is under a month. Both Xbox and Activision Blizzard have agreed to extend the final deadline for their merger to October 18.

Although it is possible that the merger closes before the October 18 date, as currently, the CMA is the only hurdle that is stopping Microsoft and Activision Blizzard to close this deal.

Source: CMA

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