The United Kingdom's competition regulator signaled it would greenlight Microsoft's purchase of Call of Duty developer Activision Blizzard.

The Competition and Markets Authority had blocked the $68.7 billion merger in April over allegations it would create a monopoly in the cloud gaming market in the U.K. Microsoft amended its deal and presented it to the CMA last month for approval. The new agreement would have Activision sell its cloud gaming rights to a rival company, Ubisoft, to ensure the company does not have a monopoly over the technology. If the deal is greenlit, it will be a significant step for the company, which has been under heavy scrutiny from regulators in Europe and the United States over the impact of one of the largest technology mergers in history.

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The updated proposal "makes important changes that substantially address the concerns [the CMA] set out in relation to the original transaction earlier this year," the CMA wrote in a Friday update.

"In particular, the sale of Activision's cloud streaming rights to Ubisoft will prevent this important content — including games such as Call of Duty, Overwatch, and World of Warcraft — from coming under the control of Microsoft in relation to cloud gaming," the watchdog wrote. The agency found that Microsoft already held a "strong position" in the market due to its ownership of Xbox Game Pass and that it could have used its control over Activision Blizzard to reinforce this position. By transferring the rights of the product to Ubisoft, Microsoft will "maintain open competition as the market for cloud gaming develops over the coming years."

The authority still has "limited residual concerns" about the deal related to whether certain parts of it can be "circumvented, terminated or not enforced" but believes Microsoft has offered remedies to ensure the sale of Activision Blizzard's cloud gaming rights to Ubisoft is enforceable.

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Microsoft and Activision Blizzard have until next month to finalize the acquisition in the U.K.

The U.S.-based Federal Trade Commission initially moved to block the Microsoft deal, pushing it to trial. Judge Jacqueline Scott Corley in San Francisco ruled in favor of Microsoft in July, arguing that the FTC "has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition." The agency withdrew its challenge in July but stated it intends to refile at a later date. The European Union, in contrast, approved the deal on first review.