The Competition and Markets Authority (CMA) has shared a statement suggesting that it could climb down from its staunch opposition to Microsoft Corporation (NASDAQ:MSFT)’s US$69bn megamerger with video games rival Activision Blizzard Inc (NASDAQ:ATVI).
The British competition watchdog has been steadfast in its opposition to the takeover on anti-competitive grounds relating to Activision’s AAA Call of Duty gaming franchise.
Sony has pressed global regulators to toss out the merger as it fears Microsoft will block PlayStation users from playing Call of Duty, of the largest entertainment franchises in the world.
US regulator the Federal Trade Commission (FTC) was today strongarmed by the courts to ditch its opposition to the merger, leaving the CMA alone in its opposition.
However, less than an hour after the court's ruling, the CMA appeared seemed willing to reconsider the deal.
"Whilst merging parties don’t have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation," the CMA said.
"Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis."
However, pending another investigation, the CMA said the current ruling “still stands”.
The Microsoft Activision deal is expected to go ahead regardless, with certain UK-only carve-outs in place to satisfy the CMA.