Under the new deal, Microsoft will not acquire the cloud streaming rights to all current and future Activision games released during the next 15 years.
Microsoft said the restructured deal would address concerns set out by the CMA. In particular, the transaction is intended to provide an independent third-party content supplier, Ubisoft, with the ability to supply Call of Duty maker Activision’s gaming content to all cloud gaming service providers.
Under the terms of the deal, Ubisoft will compensate Microsoft for the cloud streaming rights to Activision’s games through a one-off payment and through a pricing mechanism with an option that supports pricing based on usage.
The CMA said it will begin a new investigation and the statutory deadline for a decision is 18 October 2023.
Sarah Cardell, Chief Executive of the CMA, said: “This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments.
“Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”
Microsoft previously blasted the CMA over its decision to block its deal with Activision after a number of other major global regulators gave it unconditional approval.
“This decision, I have to say, is probably the darkest day in our four decades in Britain,” Microsoft president Brad Smith blasted in an interview with the BBC. “It does more than shake our confidence in the future of the opportunity to grow a technology business in Britain than we’ve ever confronted before.”
Microsoft is understood to face a $3 billion break-up fee if the deal falls through.