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The CMA's decision to agree to reconsider the deal at this stage, when an appeal was imminent, has surprised advisers on the deal and many competition lawyers.

"It is really an unprecedented and dramatic turn of events," said Alex Haffner, competition partner at UK law firm Fladgate.

One source close to the deal, who asked not to be named, said they were surprised by the CMA's decision, saying it looked like the UK regulator did not want to stand alone from the two big jurisdictions of the European Union and the United States.

Becket McGrath, a partner at Euclid Law, said it seemed like the CMA wanted a way out of an "uncomfortable position".

UK's CMA open to new Microsoft-Activision probe after u-turn | Reuters