A London tribunal has officially put on hold Microsoft’s appeal against the UK’s rejection of its $69 billion takeover bid for Activision Blizzard. The decision was made to allow more time for the parties involved to resolve their disagreements.
Microsoft, Activision, and the UK’s Competition and Markets Authority (CMA) jointly requested a two-month stay of the case after the CMA expressed its willingness to consider a modified deal proposed by Microsoft.
The Competition Appeal Tribunal (CAT) ruled that the full hearing of Microsoft’s appeal, originally scheduled to start on July 28, should be postponed. The judge, Marcus Smith, stated that he would adjourn next week’s hearing if the CMA could justify the need for it based on material changes in circumstances or special reasons.
The CMA blocked the acquisition of Activision in April, citing concerns about its impact on competition in cloud gaming. However, after a U.S. federal court ruled in favor of the deal, the CMA indicated that it could reassess the situation based on a restructured proposal.
With the CMA’s final report typically being conclusive, the CAT is now the remaining recourse for companies involved. Both sides hope that the two-month pause will allow constructive engagement in relation to Microsoft’s modified proposals, which they believe can address the CMA’s concerns.
Microsoft’s lawyer emphasized the urgency to close the deal and saw the UK as the only obstacle in its way.