Despite Microsoft claiming via Microsoft Gaming and Xbox CEO Phil Spencer that talks with regulators are advancing, we got a surprising update from the United Kingdom's market regarding the purchase of Activision Blizzard.

The UK Competition and Markets Authority have declared that they need to look further for more details on Microsoft's buying Activision Blizzard, becoming the first big market to do so after the Saudi Arabia market did not object to their side of the gaming industry regulation.

"[We are] concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services."

In the UK, this kind of procedure is called Phase 2 Investigation, which now is up to Microsoft to answer specific questions or if the government doesn't hear from Microsoft, they will lead the investigation with the information available.

Phil Spencer respond and lay out initial plans

Without wasting time, Microsoft responded via Brad Smith (Microsoft President) and Phil Spencer in a blog post that with Spencer focusing on immediate plans after the transaction closes, including having Microsoft Gaming going on a “principled path” in its approach to Xbox Game Pass that will see Overwatch, Diablo, and Call of Duty all available in Xbox Game Pass but not prevent games like Call of Duty from being available on other platforms.

This will be effective on the next Call Of Duty game that latest rumors stated that Activision will take a break in 2023 and next main launch is slated by 2024 with Treyarch taking the turn of main developer again.

Meanwhile Smith went directly at the UK's move and stated that ready to work with the CMA on next steps and address any of its concerns while also insisting that exclusivity is not part of the plan when they get to own most of Activision Blizzard's IPs.

Regardless of this event, a rejection from UK will not stop the transaction elsewhere, including the USA's scenario as the FTC has not yet published its position and noise is that were are in any moment now for a non-objection or an formal objection.

If happens that UK bans the purchase, then Microsoft and Activision Blizzard will have to call off elsewhere the acquisition plans as despite that UK doesn't govern USA and etc, the thing is that Mergers & Acquisitions agreement goes for the "All Or Nothing" regarding having all markets (countries) in the same page.

And even if they can let Activision Blizzard operate independently in the UK, it will be troublesome for Xbox in general anyways. 

Source: Microsoft responding to UK CMA