After regulators launched a thorough investigation on Tuesday and issued a cautionary statement regarding the deal's effects, Microsoft (MSFT.O) may be required to make concessions in order to allay EU antitrust concerns regarding its $69 billion offer for "Call of Duty" maker Activision Blizzard (ATVI.O).
The American software giant, which made the purchase official in January, is hoping that Activision's library of titles would improve its ability to take on market leaders Tencent (0700.HK) and Sony (6758.T), the latter of which has voiced its disapproval of the arrangement.
The transaction may significantly lessen competition in the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems, according to the European Commission's preliminary investigation, which was released in a statement.
It said, "The early analysis implies that Microsoft may be able to participate in foreclosure methods vis-à-vis Microsoft's competitor distributors of console video games, as well as a possible economic motivation to do so.
Microsoft announced that it will collaborate with the EU antitrust authorities to resolve legitimate market concerns.
The transaction may significantly lessen competition in the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems, according to the European Commission's preliminary investigation, which was released in a statement.
It said, "The early analysis implies that Microsoft may be able to participate in foreclosure methods vis-à-vis Microsoft's competitor distributors of console video games, as well as a possible economic motivation to do so.
Microsoft announced that it will collaborate with the EU antitrust authorities to resolve legitimate market concerns.