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After regulators launched a thorough probe on Tuesday and issued a warning about the deal’s effects, Microsoft may be need to make concessions in order to allay EU antitrust worries over its $69 billion offer for “Call of Duty” developer Activision Blizzard.
The American software giant, which made the transaction official in January, is wagering that Activision’s library of titles will help it better compete with market leaders Tencent and Sony, the latter of which has voiced its disapproval of the arrangement.
The deal may severely lessen competition on the markets for PC operating systems, multigame subscription services, and/or cloud game streaming services, according to the preliminary findings of the Commission’s investigation.
It said, “The early analysis implies that Microsoft may be able to participate in foreclosure methods vis-à-vis Microsoft’s rival distributors of console video games, as well as a potential economic motivation to do so.
“Sony, the market leader, claims to be concerned about Call of Duty, but we have stated that we are dedicated to making the same game available on both Xbox and PlayStation on the same day. Instead of restricting access to the game, we want more people to enjoy it.”
Microsoft announced that it would collaborate with the EU antitrust authorities to resolve legitimate market concerns.
EU competition authorities said they would have until March 23, 2023 to decide whether to clear or block the deal. 31 that Microsoft faces a full EU investigation after refusing to provide relief in the EU’s preliminary review of the deal.