The United Kingdom’s Competition and Markets Authority extends its timetable for the review of Microsoft’s acquisition of Activision Blizzard.
The United Kingdom’s Competition and Markets Authority has extended its timetable for the review of Microsoft‘s acquisition of Activision Blizzard. Microsoft’s ongoing effort to acquire Activision Blizzard is an incredibly complicated international endeavor. Expanded reviews of Microsoft‘s deal are being done in multiple countries, in an effort to fully understand the ramifications of the $68.7 billion deal. The UK’s CMA appears to be ensuring it isn’t rushed before it makes an official decision.
As Microsoft’s efforts to close its acquisition of Activision Blizzard continue, the CMA’s review of the deal is perhaps the most important remaining aspect going forward. While the FTC’s rejection of the deal in the US is very notable, Microsoft can seek to counter the FTC in US courts – where the current FTC has lost all similar legal efforts. In the UK, however, if the CMA decides not to approve the acquisition, Microsoft is left with little recourse. The CMA’s review is extremely important.
Those hoping the CMA’s review of the Activision Blizzard acquisition would be finished soon will have to remain patient, however. The CMA has now announced that it’s extending the deadline of its review. The previous deadline was set for March 1, but that date has now been pushed back to April 26. In explanation for the extension, the CMA cites a substantial “volume of evidence” and the overall scope of its investigation.
While the deadline has been extended, the CMA is still hopeful that it won’t need all of the additional time. The CMA also commented that it hopes to complete its Activision Blizzard acquisition inquiry “as soon as possible and in advance” of the April 26 deadline. That could mean that the extension is less out of need so much as just in case the extra time is necessary.
All things considered, the delay is unlikely to be particularly impactful to Microsoft’s ongoing efforts to close the acquisition. That’s because other regulatory bodies are also still working on the matter. The EU commission’s review, another major factor in whether the acquisition goes through, has a deadline of April 11. Even ignoring that, Microsoft’s legal defense in the US is scheduled for August 2023, though circumstances could change and it could arrive in court earlier. Regardless, April could be early compared to when the acquisition is truly concluded.
What’s funny about the CMA’s delay is that a month and a half is no time at all for the video game industry. Gamers deal with delays of months and months for projects routinely. Still, the CMA’s decision is incredibly important and could shape the industry in unclear ways. Still, the delay doesn’t materially change anything for Microsoft‘s acquisition of Activision Blizzard at this point in time.
