Microsoft could “withdraw” Activision from the UK to bypass the CMA’s ruling

Following the rejection of Microsoft's acquisition of Activision Blizzard by the UK regulator, the Competition and Markets Authority (CMA), Microsoft may consider withdrawing the publisher's operations from the UK.

The details:

• According to a new Bloomberg report, Microsoft President Brad Smith will meet with UK Chancellor Jeremy Hunt to discuss the CMA's decision to prevent the $69 billion deal from taking place in the country. Smith is in London for a "scheduled talk about the potential of AI and the need for thoughtful regulation of it," according to a Microsoft spokesperson, but will also hold private discussions, including "the proposed acquisition of Activision Blizzard as we remain committed to finding creative and constructive ways to address remaining regulatory concerns.”
• Hunt has previously criticized the CMA's decision, stating that the watchdog must "understand their wider responsibilities." According to sources, the two will discuss how Microsoft intends to respond to the ruling, including "extreme" options such as withdrawing the publisher's operations from the UK or completely ignoring the block and proceeding with the acquisition.
• If Microsoft relocates Activision's operations, it does not necessarily mean that its titles and services will be unavailable in the UK, as it could provide its products through a European distributor. However, it may affect its employees in its UK office, including those in publishing and development.
• So far, the acquisition has been approved in nearly 40 countries worldwide, including within the European Union, South Korea, and China, with the UK’s Competition Appeal Tribunal (CAT) set to review Microsoft’s appeal against the CMA’s ruling, which was lodged last week.

More Microsoft news:

• Microsoft may have hinted that a new Psychonauts game is in the works and that it will be revealed at the Xbox Summer Showcase in June. The Australian Twitter account of the gaming giant posted a tweet containing letters that spell out "PSYCHO XXX" inside a naughts and crosses grid, implying that a third entry is on the way.
• Wolfenstein developer MachineGames is hard at work on a new first-person shooter, which many believe will be Wolfenstein 3. A job posting at the studio requests that applicants have prior experience with the developer's titles, with the majority of its catalog consisting of Wolfenstein games.