Microsoft and Activision met with the UK's antitrust watchdog this week to discuss possible solutions, regarding concerns on their $69 billion merger.

In light of concerns that their $69 billion merger with Activision Blizzard would reduce competition in the video game industry, Microsoft and Activision met with the UK's antitrust watchdog this week to discuss possible solutions, according to people familiar with the discussions. This comes as international regulators intensify their investigation into the unsettled merger.

According to the sources, who declined to be identified discussing a private subject, lawyers for Microsoft attended a secret session with the Competition and Markets Authority in London on Monday to examine the regulator's preliminary findings and evaluate the viability of possible remedies.

On February 8, the CMA expressed an early concern that the combination may mean higher costs, fewer options, and less innovation for gamers in the UK. It proposed a range of solutions, such as selling off the most popular Call of Duty game or stopping the agreement completely. The organisation did state that it will take into account other measures to protect rivals' access to the popular shooting game.

According to the sources, Microsoft also stated that it is prepared to hire a third-party monitor to oversee its compliance. This move is intended to alleviate the CMA of the burden of devoting resources to ensure that the tech giant keeps its commitments. The UK authority allowed for behavioural treatments in its interim evaluation. The business claimed in the past that it had a lengthy history of upholding its word to authorities.

Moreover, Microsoft said last week that it had agreements to share Call of Duty with Nintendo’s and Nvidia’s platforms, with 150 million more users having access if the arrangement is approved.

In recent years, so-called behavioural remedies have come under fire from competition regulators in the US and the UK. The chief executive officer of CMA, Sarah Cardell, made clear this week that behavioural solutions are not recommended, "especially in a field where technology or business models are changing rapidly."

After the conversations behind closed doors, the corporations want to present updated plans to EU officials this week, the sources added. The deadline for the transaction evaluation was extended by the commission until April 25.

(Bloomberg.com, Reuters.com, Yahoofinance.com)