The UK's contention watchdog has said Microsoft's revised connection to bargain the Call of Duty shaper Activision Blizzard "opens the door" to the woody being cleared.
The Competition Markets Authority (CMA) said the updated woody appeared to code concerns it had raised.
Under the caller proposals, Microsoft volition not bargain the unreality gaming rights owned by Activision Blizzard.
Its archetypal $69bn (£59bn) woody was blocked by UK regulators.
Earlier this year, the CMA blocked Microsoft from taking connected the full of Activision implicit concerns that the woody would harm contention successful unreality gaming successful the UK.
Microsoft past submitted a restructured woody for the contention watchdog to look astatine past month.
In a connection connected Friday, the CMA's main executive, Sarah Cardell, said: "The CMA's presumption has been accordant passim - this merger could lone spell up if competition, innovation, and prime successful unreality gaming was preserved."
A consultation volition beryllium opened earlier a last determination connected the woody is taken.
If it receives last approval, it volition bring to an extremity a tumultuous year-and-a-half for Microsoft.
Since it announced plans to bargain Activision Blizzard successful January past year, the merger has divided regulators astir the world.
Ms Cardell added: "It would person been acold better, though, if Microsoft had enactment guardant this restructure during our archetypal investigation.
"This lawsuit illustrates the costs, uncertainty and hold that parties tin incur if a credible and effectual remedy enactment exists but is not enactment connected the array astatine the close time."