Approaching the end of the deal of the year

The UK's Competition and Markets Authority (CMA) has approved the deal for Microsoft to acquire Activision, but did not grant permission for cloud gaming rights.

In a statement, the regulatory body said, "The new deal will prevent Microsoft from locking up competition in cloud gaming as this market continues to grow, preserving competitive prices and services for UK cloud gaming customers."

The CMA was the final regulatory body blocking the deal, which had been in limbo for months. In other words, Microsoft is now very close to completing the acquisition.

The decision marks a major U-turn from the CMA, which was the deal's harshest critic and had effectively blocked it earlier this year over concerns that it would stifle competition in the emerging cloud gaming market.

Microsoft first proposed the acquisition of Activision in January 2022 but has since faced legal challenges in the US, Europe, and the UK.