Microsoft has reportedly reached an agreement with the UK’s Competition and Markets Authority (CMA) to revise the terms of its proposed $69 billion (£55 billion) merger with Activision Blizzard.

While the EU has since greenlit the merger between the two gaming behemoths, the CMA blocked the merger in April citing 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 authority also went on to restrict the companies from "acquiring an interest in one another" in the future.

Microsoft vice chair and president Brad Smith subsequently met with chancellor Jeremy Hunt for “crunch talks” over the situation.

According to Gamesindustry.biz, Microsoft was due to face the CMA in court on 24 July to argue against its decision to the Competition Appeal Tribunal.

Discussions with the UK government evidently proved productive, with Brad Smith telling the news outlet that while it ultimately disagrees with the CMA’s concerns, it is now considering how the transaction might be modified in order to “address those concerns in a way that is acceptable to the CMA”.

"In order to prioritise work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect,” Smith said.

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