Regulator Warns of Potential Merger Investigation for Microsoft's Activision Deal

The UK's Competition and Markets Authority (CMA) has warned that Microsoft's proposed acquisition of Activision Blizzard may trigger a new merger investigation. While negotiations between Microsoft and the CMA are at an early stage, the regulator emphasizes that the discussions could lead to a new investigation. The CMA had originally blocked the deal earlier this year due to concerns over cloud gaming competition. CNBC reported that Microsoft and the CMA have agreed on a "small divestiture" to address these concerns, likely specific to the UK and related to Microsoft's Xbox Cloud Gaming services. EU regulators approved the deal earlier this year with the condition of 10-year licensing deals offered by Microsoft to cloud gaming competitors.