Microsoft is suing Jeremy Hunt in search of a 'solution' to Activision's £55bn deal

Microsoft President Brad Smith says he is “looking for solutions” after meeting with Jeremy Hunt on Tuesday. Photo: Betty Laura Zapata/Bloomberg

Mr Hunt does not have the authority to order an independent regulator, and Treasury Department sources insist the Chancellor did not make concessions to Microsoft during his meeting with Mr Smith.

However, the chancellor made it clear that he sympathizes with the position of the company. He said last month that competition chiefs need to “realize their broader responsibility” for economic growth and investment promotion.

CMA blocked Microsoft's Activision buyout over fears the deal would give the company a dominant position in the emerging cloud gaming market where players stream games over the internet.

The main objection of officials was the amount of control. Microsoft will be able to use cloud licensing for games like Call of Duty, developed by Activision and one of the most popular franchises in the world.

Microsoft already has an extensive portfolio of games that it currently offers through its cloud gaming an Xbox Network service that boasts approximately 120 million monthly users.

The Redmond, Washington-based company signed a series of agreements for a period of 10 years. with competitors to resolve the CMA's problems, but officials dismissed them, saying they didn't go far enough.

The UK took a tougher stance than the EU, which backed out of the deal in May. However, U.S. regulators have taken legal action to stop it.

A detailed CMA report explaining its decision appears to leave little wiggle room, short of offering Microsoft a major compromise such as waiving from the right to manage Activision's cloud game streaming.

Microsoft has filed legal action against the CMA decision, which is ongoing.

Microsoft declined to comment, except for Mr. Smith's public comments. The Treasury also declined to comment.

In The Telegraph in May, CMA chairman Markus Bockerink said he “strongly disagrees” with the idea that regulators' actions are detrimental to foreign investment in the UK.< /p>