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The UK's Competition and Markets Authority (CMA) said Microsoft's "restructured deal makes important changes" and "opens the door to the deal being cleared".
Microsoft announced the biggest gaming deal in history in early 2022, but the $69 billion acquisition was blocked in April by Britain's competition regulator, which was concerned the U.S. computing giant would gain too much control of the nascent cloud gaming market.
Last month, "Call of Duty" maker Activision agreed to sell its non-European streaming rights to Ubisoft Entertainment to get the biggest deal yet in video-gaming past Britain's Competition and Markets Authority (CMA).
The tweaks Microsoft made to the proposed Activision purchase appears to have won the CMA over meaning the last obstacle in the acquisition has been overcome.
Some long-awaited Bethesda classics are scheduled to be released soon, if the Xbox FTC leak is to be believed