Reuters has reported that the European Commission (EC) is preparing to send Microsoft an antitrust warning about its Activision-Blizzard acquisition deal, according to sources familiar with the matter.
The European Commission is the executive body of the European Union. It operates its legislative rights mainly in economic regulation fields, and it has established antitrust laws to ensure favorable terms for consumer goods and services. The Commission is also currently readying a charge sheet known as a "Statement of Objections" which is supposed to include its concerns about Microsoft's deal, and it will send it in the near future.
Article 101 of the European Commission's antitrust law clearly prohibits any agreements between any two independent market operators which restrict competition. Article 102 also prohibits those who have a dominant position from abusing their position to impose unfair prices, trading conditions, or any other unacceptable obligations. The power to exercise these two articles is given to the EC's European Competition Network (ECN), which is comprised of 27 countries and is empowered to ensure that competition is not distorted or restricted.
A Statement of Objections is a formal step in the Commission's investigations into violations of EU antitrust rules. It is the procedure used to inform the concerned parties of the objections raised against them, and the addressees can examine the documents and reply in writing or request an oral hearing. A similar statement was sent to Meta last December for breaching EU antitrust laws on suspicion of Facebook distorting competition in the markets for online classified ads.
The objections over Microsoft's deal – just as Nividia and Google have expressed before – mainly lie around the fear of future disadvantages in the competitive market. It is believed that Microsoft will leverage its position to exclude certain companies and services from having access to Activision games, and as the Federal Trade Commission has explained before in its lawsuit, Microsoft already has a big advantage in the gaming market through its subscription and cloud services, so any more would be unfair and hinder competition in the gaming ecosystem.
Microsoft has stated in Reuters's report that it's currently working with the European Commission to address any marketplace concerns, reiterating that its goal is to "bring more games to more people, and this deal will only further that goal." The EU antitrust watchdog, which has set an April 11 deadline for its decision on the deal, is still yet to comment on the situation.