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The European Union (EU) has issued a formal antitrust warning to Microsoft over its $69 billion Activision Blizzard deal.
The European Union has sent Microsoft a “statement of objection” to why the deal threatens competition in the video game market, US-based Politico reports.
In response, Microsoft said it was “listening carefully to the European Commission’s concerns” and was confident it would “understand.” The Redmond-based technology company said it was committed to “finding a way forward” to close the deal.
This is the latest roadblock in a rocky road for Microsoft to push through the deal.
A US federal judge rejected the FTC’s request to stop virtual reality content maker Meta
In December 2022, the US Federal Trade Commission (FTC) filed suit against Microsoft to stop the merger. The FTC raised many of the same objections as the EU.
A bone of contention is a profitable calling franchise. Microsoft has repeatedly said that it will not be limited to hardware and has signed a 10-year deal with Nintendo to bring games to the platform.
The FTC also cited Microsoft’s previous acquisition of ZeniMax, the parent company of Bethesda Game Studios, the makers of Elder Scrolls and Fallout.
Bethesda has decided to make upcoming games Starfield and Redfall exclusive, despite Microsoft guaranteeing it won’t do anything to the EU.
Sony, Microsoft’s rival in the console space, is unhappy with the deal. He repeatedly turned down offers from Microsoft.
Google and Nvidia have also charged to the FTC that if the merger is allowed to go ahead, Microsoft would gain an unfair advantage in mobile, subscription and cloud services.
Microsoft is racing against the clock to close the deal by July 18 or face a $3 billion payment.
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