The Competition and Markets Authority has blocked Microsoft’s merger with Activision Blizzard, which leads to a new proposition with Ubisoft.

Microsoft would sell the rights to Activision’s cloud streaming service to competitor Ubisoft in a bid to appease the United Kingdom’s regulatory body.

Sarah Cardell, Chief Executive of the CMA talked up the proposition:

“The CMA has today confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed.”

“Separately, Microsoft has notified a new and restructured deal, which is substantially different from what was put on the table previously. As part of this new deal, Activision’s cloud streaming rights outside of the EEA will be sold to a rival, Ubisoft, who will be able to license out Activision’s content to any cloud gaming provider. This will allow gamers to access Activision’s games in different ways, including through cloud-based multigame subscription services. We will now consider this deal under a new Phase 1 investigation.”

Under the new deal, Microsoft will not acquire the cloud streaming rights to all current and future Activision Blizzard games released during the next 15 years.

As of right now, Microsoft and Activision Blizzard have agreed to a new, restructured deal, which has been submitted to the CMA to review in a new investigation.

You can view any new developments on the official case page.