The European Commission (EC) is investigating tech giant Microsoft and its proposed Activision Blizzard acquisition.
The EC learned of the transaction on September 30.
The EC announced its investigation Tuesday, stating concern over the proposed acquisition, which it is investigating under EU regulations.
According to the EC, the acquisition may reduce competition in the console and PC video game distribution markets.
Markets include multi-game subscription services, cloud game streaming services, and PC operating systems.
The EC expressed concern that Microsoft may foreclose access to Activision Blizzard’s PC and console video games like Call of Duty.
“Such foreclosure strategies could reduce competition in the higher markets for the distribution of console and PC video games, leading to higher prices, lower quality, and less innovation for console game distributors, which may in turn be passed on to consumers,” says the EC in a press release. “The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in such conduct vis-à-vis rival providers of PC operating systems.”
The EC says Microsoft may hinder rival providers from competing with the Windows operating system.
If Microsoft combines its cloud distribution system with Activision Blizzard’s games, it could discourage users from buying non-Windows computers.
The EC says it will thoroughly investigate the transaction’s effects to determine whether concerns are warranted.
The EC has until March 23, 2023, to make a decision on Microsoft’s acquisition of Activision Blizzard.