Microsoft has submitted a revised contract to the UK's Competition and Markets Authority (CMA), which had previously banned its deal with Activision Blizzard. The CMA has granted preliminary permission for the new agreement, identifying limited concerns. Microsoft has proposed remedies that the CMA has tentatively concluded to address these issues.

It stated that the revised agreement includes significant revisions that "substantially address the regulator's concerns."

What exactly is the reworked deal?

The CMA previously stated that after acquiring the 'Call of Duty' producer, Microsoft may utilize its "strong position in cloud gaming services" to hinder competition and consolidate this advantage.

Microsoft then announced the sale of Activision's cloud streaming rights to Ubisoft, preventing games like Call of Duty, Overwatch, and World of Warcraft from falling under Microsoft's authority in terms of cloud gaming.

"The new deal instead results in the cloud streaming rights for Activision's games being transferred to an independent player, Ubisoft, maintaining open competition as the market for cloud gaming develops over the coming years," the company added. Microsoft has also offered remedies for "limited residual concerns" about some elements of Activision's sale of cloud streaming rights to Ubisoft.

Microsoft's statement

Microsoft's vice chairman and president, Brad Smith, stated that the CMA's constructive attitude has encouraged the company.

"This positive development in the CMA's review process gives us hope." We submitted remedies that we believe adequately satisfy the CMA's outstanding concerns about cloud game streaming, and we will continue to work towards obtaining approval to close before the October 18 deadline," he said on X.

The CMA has now begun a consultation on Microsoft's proposed remedies, which will run until October 6.