A London tribunal formally halted Microsoft's appeal against Britain's decline of its $69 billion acquisition of Activision Blizzard to allow the parties more time to settle their disputes.

Following the CMA's announcement that it would take into account a modified settlement proposed by Microsoft, Microsoft, Activision, and Britain's antitrust watchdog, the antitrust and Markets Authority (CMA), had all filed for a two-month suspension of the case.

The whole hearing of Microsoft's appeal, which was scheduled to start on July 28, has been postponed, according to the Competition Appeal Tribunal (CAT).

If the CMA offered justification for why it believes there has been a major change in circumstances or exceptional reason justifying its request for an adjournment, Judge Marcus Smith indicated he would be inclined to postpone next week's hearing.

The judge also asked for the CMA to set out any new consultation process "so that everybody is clear as to how it will work".

The CMA became the first significant regulator to oppose the acquisition of "Call of Duty" manufacturer in April, citing worries about the effect on cloud gaming competition.

The U.S. Federal Trade Commission (FTC) has also opposed the merger, but it recently suffered a significant setback when a federal court denied the FTC's request to freeze the agreement temporarily.

The CMA's final report is typically the last word in Britain. Companies are limited to using the CAT as their only option for redress following its publication.

However, last week, the CMA indicated it may review a modified proposal again less than an hour after a U.S. federal judge determined the sale could proceed. Later, it stated that, pending the results of a new inquiry, a restructured transaction might allay its worries.

The CAT received requests from both parties for a two-month adjournment of the proceedings, which the CMA's attorneys claimed would "enable the CMA and the parties to engage swiftly and constructively in relation to Microsoft's proposals."

The CMA's legal representative, David Bailey, told the tribunal that the CMA's decision to consider a fresh arrangement "formed no part of the CMA's thinking" regarding the FTC's initial loss.

He added: "Based upon the discussion to date, both sides - Microsoft and the CMA - have confidence that Microsoft notifying a restructured transaction is capable of addressing the concerns that the CMA has identified."

Microsoft's lawyer Daniel Beard said: "The UK is the only impediment to closing (the deal) and speed is of the essence”.