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European Union reportedly preparing to challenge Microsoft’s Activision Blizzard deal

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According to a recent report, the executive branch of the European Union (EU) is expected to oppose Microsoft’s proposed acquisition of Activision Blizzard. The European Commission began looking into the $69 billion transaction early in November.

Currently, the EU has not yet released its initial conclusions on the matter. Microsoft is already up against regulatory resistance in the United States, where the U.S. Federal Trade Commission (FTC) filed a lawsuit to stop the merger on antitrust grounds in December.

The company also filed a 37-page response to the FTC lawsuit, which previously said that the FTC’s lawsuit violated the company’s constitutional protections but was later corrected and acknowledged.

According to Reuters, the European Commission is now anticipated to contest the merger even though the EU had refuted a significant FTC claim against the Activision Blizzard acquisition before Microsoft formally responded to that lawsuit.

The European Commission is getting ready to send Microsoft a charge sheet outlining its objections to the agreement, known as a statement of objections. The watchdog had promised to wrap up its initial investigation of the purchase by April 11, although the exact dates are still unclear.

Microsoft was anticipated to provide EU regulators with remedies in an effort to avoid issuing a statement of charge and speed up the regulatory procedure. However, despite continued informal conversations on concessions, the EU competition enforcer is not anticipated to be receptive to remedies before submitting its charge sheet.

According to previous reports, the solutions provided by Microsoft included a 10-year licensing deal to keep Call of Duty on PlayStation consoles and even bring the franchise to Nintendo devices. Other solutions included allowing Activision games on other subscription services apart from X-Box.

Despite all the roadblocks, Microsoft still anticipates concluding the acquisition of Activision Blizzard in mid-2023. Brazil, Chile, Saudi Arabia, and Serbia have already approved of the proposed merger, claiming that the deal will not create any issues in their countries.

Currently, the FTC case continues to be the primary legal challenge that Microsoft will have to get through in order to complete its acquisition of Activision based in Santa Monica, California, despite the recently reported statement of reservations from the EU’s executive arm.

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