The U.S. software program firm, which introduced the deal in January, is betting Activision’s steady of video games will assist it compete higher with leaders Tencent and Sony, with the latter crucial 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 mentioned in a press release.

“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 mentioned it could work with the EU antitrust watchdog to deal with legitimate market issues.

“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 mentioned.

The EU competitors enforcer mentioned it could determine by March 23, 2023 whether or not to clear or block the deal. Reuters reported on Oct. 31 that Microsoft would face an intensive EU probe after declining to supply treatments through the preliminary EU evaluate of the deal.

Britain’s antitrust watchdog can also be investigating the acquisition, with related issues to its EU peer.