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Deal between Microsoft and Activision is in jeopardy because of an EU antitrust warning

The European Union is poised to issue an antitrust warning in response to Microsoft’s $69 billion deal to purchase Activision Blizzard, which may create yet another roadblock in the way of the merger’s conclusion.

The purchase of Activision presents Microsoft with another another obstacle. The European Union plans to bring formal charges objecting to the merger on antitrust grounds.

According to the people, the European Commission is planning to send Microsoft a charge sheet describing its concerns to the deal.

The European Union antitrust authority, which has until April 11 to provide a ruling on the merger, has declined to comment.

A statement from Microsoft reads as follows: “We are continuing to collaborate with the European Commission in order to address any market concerns. With this arrangement, we can reach more individuals with our games.

The American software juggernaut and maker of the Xbox announced the purchase in January of last year in an effort to better compete with market leaders Tencent and Sony.

Both American and British regulators have voiced concerns, and the Federal Trade Commission in the United States has sued to block the merger.

Others familiar with the matter told Reuters in November that Microsoft would provide answers to EU regulators in an attempt to avert a statement of charge and hasten the regulatory process.

According to the sources, the EU competition enforcer is not expected to be receptive to remedies prior to the release of its charge sheet, despite continued informal negotiations on concessions.

When Microsoft revealed last month that it had negotiated a 10-year deal with Nintendo to make “Call of Duty” available on Nintendo systems, Sony, which opposes the acquisition, asked Microsoft whether it would be open to a similar arrangement with Sony.

All conditions have been lifted by Brazil, Saudi Arabia, and Serbia in regards to this deal.