CMA Says Negotiations with Microsoft Are “at an Early Stage”

CMA Says Negotiations with Microsoft Are “at an Early Stage”

Microsoft’s ongoing authorized proceedings in opposition to the FTC got here to an finish lately with the latter being denied an injunction in opposition to the previous’s proposed deal to accumulate Activision Blizzard. Shortly afterward, Microsoft confirmed that it had additionally agreed with the UK’s Competitors and Markets Authority (CMA) to pause litigation and resume negotiations relating to the deal.

Now, in a press release to The Verge, the CMA media officer Billy Proudlock has said that the aforementioned negotiations with Microsoft are nonetheless “at an early stage”. In actual fact, Proudlock says the CMA stands by its earlier determination to dam Microsoft’s proposed $69 billion acquisition of Activision Blizzard, and that ought to the corporate select to suggest a restructured deal throughout its negotiations with the CMA, it might nonetheless “result in a brand new merger investigation.”

“While merging events don’t have the chance to place ahead new treatments as soon as a ultimate report has been issued, they’ll select to restructure a deal, which may result in a brand new merger investigation. Microsoft and Activision have indicated that they’re contemplating how the transaction is likely to be modified, and the CMA is ready to interact with them on this foundation. These discussions stay at an early stage and the character and timing of subsequent steps will probably be decided in the end. Whereas each events have requested a pause in Microsoft’s enchantment to permit these discussions to happen, the CMA determination set out in its ultimate report nonetheless stands.”

Microsoft is, after all, working to shut to cope with Activision Blizzard earlier than its deadline of July 18, which suggests negotiations with the CMA might nonetheless show to be a roadblock for the corporate. Apparently, earlier stories have claimed that Microsoft has additionally thought of withdrawing Activision Blizzard from the UK solely in an effort to work across the CMA’s block.

In the meantime, the FTC can be reportedly “leaning towards” interesting in opposition to the current ruling to disclaim it an injunction againt Microsoft.

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