Following Microsoft’s publication of “material changes” in the ongoing Activision Blizzard situation on Monday, The UK Competition and Markets Authority (CMA) is requesting public feedback within a short four-day window. This rapid response period suggests a potential shift in the regulatory body’s stance, indicating a possible approval of the acquisition.
The CMA’s statement indicates that Microsoft has submitted a document outlining reasons why material changes of circumstance should prevent the CMA from enforcing a final order against the merger. The CMA will consider Microsoft’s submission, along with other responses, before the statutory deadline of August 29.
Contrary to expectations, Microsoft did not offer additional concessions to sway the CMA’s initial decision to block the acquisition. Instead, the company presented “new evidence,” largely gathered during recent court hearings with the U.S. Department of Justice. Microsoft’s argument hinges on the notion that the CMA was unaware of this information during its original decision-making process and that it could have influenced a different outcome.
While reversing a “final decision” is a rare move for the CMA, the Enterprise Act allows for a reevaluation triggered by a “material change in circumstances.” Microsoft’s use of the term “material change(s)” in its submission aligns with this legal provision.
Previously, the UK public, including PlayStation gamers and Microsoft’s competitors, voiced support for the Activision Blizzard acquisition. Considering the enhancements made to the deal, which ensure availability of key games on rival consoles and streaming services, public sentiment is likely even more favorable now.
