Microsoft wins final approval for $69B Activision deal from UK regulator

Microsoft cleared its final major regulatory hurdle on Friday when Britain's Competition and Markets Authority granted approval for the company's $69 billion acquisition of Activision Blizzard, reversing an earlier decision to block the deal and opening the path to close what stands as one of the largest technology transactions on record.

The journey to this moment has consumed nearly two years. Microsoft announced the purchase in January 2022 with the intention of adding Activision's sprawling portfolio—Call of Duty, World of Warcraft, Candy Crush, Diablo, and Overwatch among them—to its Xbox division. Since then, the deal has navigated antitrust scrutiny across more than 40 countries. The European Union granted its blessing after Microsoft committed to licensing Activision titles royalty-free to cloud gaming platforms for a decade. But Britain and the United States proved more resistant. The U.K. watchdog initially rejected the transaction, citing concerns that Microsoft could lock competitors out of the cloud gaming market, where players stream games to tablets and phones rather than purchasing expensive consoles. American regulators at the Federal Trade Commission mounted a legal challenge that ultimately failed in court, though the agency has signaled it intends to appeal and potentially unwind the deal even after it closes.

To win over the British regulator, Microsoft made structural concessions. The company agreed to sell its cloud streaming rights for all current and future Activision games—across a 15-year window—to the French studio Ubisoft Entertainment, excluding the European Union and three other European nations where Microsoft had already made separate commitments. The U.K. authority also factored in a separate agreement Microsoft had struck with Sony to keep Call of Duty available on PlayStation for at least ten years, addressing fears that the gaming giant might use Activision's flagship franchise to disadvantage its rivals.

Yet the British regulator's reversal came with sharp criticism. Sarah Cardell, the Competition and Markets Authority's chief executive, said Microsoft had resisted restructuring during the initial investigation and instead "continued to insist on a package of measures that we told them simply wouldn't work." She characterized the extended proceedings as wasteful. The regulator's about-face also drew scrutiny from antitrust observers. Max von Thun, director of the Europe office at the Open Markets Institute, credited the U.K. authority for imposing what he called a "significantly stronger" structural remedy than the European Commission had accepted, but he warned that the watchdog's flip-flopping could signal weakness to future deal-makers. "Moving forward, there is now a serious risk that in their dealings with the CMA, merging companies and their advisors will no longer take no for an answer," he said.

Microsoft President Brad Smith expressed gratitude for the "thorough review and decision," while Activision CEO Bobby Kotick said the company looked forward to joining the Xbox team. Joshua Chapman, a venture capital investor focused on gaming startups, argued the acquisition would benefit players and strengthen competition across the industry. The deal could now close before a Wednesday deadline, though uncertainty persists. The U.S. Federal Trade Commission has not abandoned its opposition and has filed notice of plans to resume its challenge, signaling a determination to reverse the transaction even if it has already been completed.