The competition regulator in the United Kingdom announced on Friday that Microsoft’s restructured takeover proposal of Activision Blizzard, submitted in August, has the potential to be approved.

Initially, the U.K. Competition and Markets Authority had blocked Microsoft’s initial $69 billion transaction, presented in January 2022, due to concerns about potential competition limitations in the emerging cloud gaming industry.

In response, Microsoft proposed a new takeover deal, suggesting the divestment of cloud rights for existing Activision PC and console games, as well as for future games published by Activision within the next 15 years, to French game publisher Ubisoft Entertainment prior to the completion of the sale.

The regulator stated on Friday that while it still has some concerns about certain provisions regarding the sale of Activision’s cloud streaming rights to Ubisoft, Microsoft has offered remedies that are expected to address these issues.

Microsoft has provided assurances to ensure that the Competition and Markets Authority can enforce the terms of the sale of Activision rights to Ubisoft. The regulator is currently seeking public input until October 6 on these matters.

Brad Smith, Microsoft’s Vice Chair and President, expressed optimism about the progress made in the review process, stating, “We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18 deadline,” in an emailed statement.

The Competition and Markets Authority has been the most vocal opponent of Microsoft’s acquisition of Activision Blizzard. The deal has also faced criticism from European Union authorities and U.S. regulators. While EU officials approved the deal in May after Microsoft offered concessions such as royalty-free licenses for cloud gaming platforms to stream Activision games, the CMA rejected similar terms.

Meanwhile, the U.S. Federal Trade Commission attempted to halt the takeover through legal action. However, a federal judge in San Francisco denied the injunction in July.