UK adds further restrictions to Activision-Microsoft merger

Companies now blocked from holding any stake in each other

The Competition and Markets Authority (CMA), the UK's antitrust regulator, has blocked Activision-Blizzard and Microsoft from "acquiring an interest" in each other.

The companies will now need "prior written consent" from the CMA before taking the acquisition any further, according to a new interim order.

Key to that order is that it applies to Microsoft and Activision's subsidiaries, as well as the main firms.

For example, Microsoft could not acquire a stake in Activision companies like Blizzard (developer of games like World of Warcraft and Overwatch) or King (maker of Candy Crush), and Activision could not invest in Xbox Game Studios.

The CMA wrote that its new interim order was "preventing pre-emptive action" (read: closing loopholes - Ed.) from Microsoft or Activision.

It's been two weeks since the CMA put the first major block in the way of Microsoft's acquisition, saying that the deal could negatively impact the future of the cloud gaming industry in the UK.

It was also concerned about a potential monopoly, stifling innovation and choice for consumers.

Both Microsoft and Activision objected to the CMA's decision, accusing the UK of being "closed for business."

As well as the CMA, antitrust bodies in the USA and European Union need to approve the deal. The EU is expected to announce a decision this month.