Microsoft may have to offer concessions to address EU antitrust concerns about its $69 billion bid for Call of Duty maker Activision Blizzard after regulators opened a full-scale investigation on Tuesday and warned about the impact of the deal.
The US software company, which announced the deal in
January, is betting Activision's stable of games will help it compete better
with leaders Tencent and Sony, with the latter critical of the deal.
"The Commission's preliminary investigation shows that
the transaction may significantly reduce competition on 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," the European Commission said in a statement.
"The preliminary investigation suggests that Microsoft
may have the ability, as well as a potential economic incentive, to engage in
foreclosure strategies vis-à-vis Microsoft's rival distributors of console
video games," it added.
Microsoft said it would work with the EU antitrust watchdog
to address valid marketplace concerns.
"Sony, as the industry leader, says it is worried about
Call of Duty, but we've said we are committed to making the same game available
on the same day on both Xbox and PlayStation. We want people to have more
access to games, not less," a Microsoft spokesperson said.
The EU competition enforcer said it would decide by March
23, 2023, whether to clear or block the deal. Reuters reported on October 31
that Microsoft would face an extensive EU probe after declining to offer
remedies during the preliminary EU review of the deal.
Britain's antitrust watchdog is also investigating the
acquisition, with similar concerns to its EU peer. © Reuters