The shame is that the CMA’s objections back in April sounded principled and coherent. The takeover of a big content company (Activision) by a big platform provider (Microsoft) would be a major event, and the specific concern was that it would happen just as the market was transitioning from consoles to cloud-based streaming. The CMA wanted to allow competition to flourish freely in cloud-based services during the development stage. That was one reason it wasn’t impressed with time-limited behavioural remedies – they require constant policing by regulators and can work against innovation and dynamism. The argument had a certain pro-competition purity about it.
It is a hard argument to sustain in isolation, however. If the US has been thwarted from adopting a similarly robust stance, the danger for the CMA is that its virtuous approach ends up making the UK games market an international outlier, to no domestic benefit. To repeat, there are more laps of the regulatory track to complete, so it’s still possible that the CMA will find an elegant solution. It is hard to see what it could be, though.