Having blocked Microsoft’s proposed deal to buy rival Activision Blizzard for around £55 billion, the Competition and Markets Authority (CMA) has added to the tech giant’s troubles by putting restrictions on the parties from “acquiring an interest” in one another.

Explaining its reasoning for blocking the merger, which would have been the largest in tech history, the authority set out concerns that the deal would “alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.”

The CMA’s additional restrictions on the companies also means that neither will be to engage with any of their respective subsidiaries or invest in one another.

Microsoft told the BBC: "We remain firmly committed to this deal and look forward to presenting our case to the Competition Appeal Tribunal."

The EU is reportedly close to greenlighting the merger, with Microsoft having resolved the hot-button issue of IP exclusivity of blockbuster franchises such as Call of Duty – which is owned by Activision – with Microsoft agreeing to keep the franchise on Sony’s PlayStation consoles and announcing an agreement to bring it back to Nintendo consoles after a decade-long absence.

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