UK slaps additional restrictions on the Microsoft x Activision Blizzard King deal

Following the controversial rejection of the Activision Blizzard x Microsoft merger from the UK's Competition and Markets Authority (CMA), the institution has imposed additional restrictions on the deal going forward.

This restriction largerly revolves around the newfound necesity for Microsoft to recieve written consent from the CMA before acquiring an Interest in Activision or any of its subsidiaries, acquiring an Interest in an enterprise holding an Interest in Activision, or holding an option to acquire an interest a company mentioned prior.

In basic terms, the CMA has demanded that any future move to acquire any aspect of Activision by Microsoft must first recieve its explciity approval. The official interim order where this was first announced states that this was done to halt any pre-emptive action from either Activision or Microsoft.

This is yet another barrier placed in the way of the Microsoft x Activision Blizzard deal that has been looming over the industry in recent months. Only recently, the CMA opted to disprove of the deal in a decision that drew the ire of several senior members of staff including Bobby Kotick and Microsoft's Brad Smith.

As it stands right now, both Activision Blizzard and Microsoft have pledged to fight the CMA's decision via appeal. This added restriction is an attempt to halt any further movement in the acquisition until future follow-up decisions have taken place.

Whether or not the two games industry giants can convince the CMA to change its mind without significant shifts in the deal itself remains a sketchy proposition. You must remember some of the lofty requirements the CMA put forth to Microsoft as part of their ultimate decision earlier this year, including the removal of Blizzard and / or King from the deal.

The next major update to expect from this (aside from a continued f*ck the UK press tour from Mr Kotick) will likely come with an official request for appeal. Once that happens, expect several more months of waiting before an absolute final decision is made by the CMA. Exciting stuff!