After an initial refusal by British regulators, Microsoft submits a revised deal to acquire Activision Blizzard

It was confirmed Tuesday by the U.K.’s Competition and Markets Authority that the original deal had been blocked.

According to the CMA, Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new titles released by Activision in the next 15 years.

A new deal for the takeover of Activision Blizzard was submitted by Microsoft on Tuesday after UK authorities rejected the company’s initial bid.

After first proposing the $69 billion acquisition of Activision in January 2022, the technology giant has faced regulatory challenges in the U.S., Europe, and the U.K.

Competition and Markets Authority confirmed Tuesday that the original deal had been blocked. The CMA will now investigate Microsoft and Activision’s new, restructured agreement, with a decision deadline of Oct. 18.

Microsoft President Brad Smith said in a statement on Tuesday that the company anticipates completing the review soon.

The CMA said Microsoft will not acquire cloud rights for existing Activision PC and console games or for new Activision games over the next 15 years. Prior to Microsoft’s acquisition of Activision, these rights will be divested to French game publisher Ubisoft Entertainment.

In early European trading, Ubisoft shares were up more than 4%.

As one of the toughest critics of the takeover, the CMA has expressed concerns that the deal would hamper competition in cloud gaming.

With subscription services like Netflix, users can stream games just as they would movies or shows on the cloud. Cloud gaming is seen as the next frontier in the gaming industry. Using PCs, mobile devices, and TVs instead of expensive consoles could even eliminate the need for expensive consoles.

Formerly, regulators suggested Microsoft could also make key Activision games exclusive to Xbox and other Microsoft platforms, such as Call of Duty.