Microsoft has offered to sell Activision’s non-European streaming rights to Ubisoft Entertainment as a way to placate regulator concerns over the £55bn acquisition of the video game maker. 

The proposal was announced on the same day that the CMA confirmed it is standing by its final decision to block the deal, claiming it would result in higher prices, fewer choices and less innovation for the video game market.

“The CMA has today confirmed that Microsoft’s acquisition of Activision, as originally proposed, cannot proceed,” said Sarah Cardell, the CMA’s chief executive. 

The regulator has now opened a phase 1 investigation into Microsoft's latest proposal, but stressed that the decision “is not a green light”.

“We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments,” Cardell added. “Our goal has not changed – any future decision on this new deal will ensure...