In addition to the US hurdles, Microsoft and Activision still need to address concerns raised by a UK regulator regarding cloud gaming. The deal was initially blocked by the regulator, and Microsoft has appealed the decision. The legal battle between the companies and the Competition and Markets Authority (CMA) has been put on hold, pending a decision by the Competition Appeal Tribunal (CAT) on July 17th regarding the implementation of the pause.
The CMA indicated that Microsoft and Activision could restructure the deal but cautioned that such a move might trigger a fresh merger investigation. The regulator has extended its decision-making deadline until the end of August to thoroughly review Microsoft’s detailed submission. However, the CMA aims to reach a conclusion as soon as possible. Reports suggest that Microsoft might consider selling some cloud gaming rights in the UK to facilitate the completion of the deal.