Microsoft’s proposed Activision Blizzard is set to face further delays as the European Commission plans to launch an “in-depth investigation” into the takeover, highlighting reasons of significant competition reduction in the console and PC markets.

The Commission expressed its concern regarding the proposed acquisition since it might “reduce competition in the markets for the distribution of console” and PC games.

On January 18, 2022, Microsoft announced its intention to acquire the American video game holding company for $106 billion in cash.

However, EU is concerned that Microsoft “may foreclose access to Activision Blizzard’s console and PC video games.” This includes high-profile games like Call of Duty.

Another concern is that the company might block the distribution of Activision Blizzard games to rivals.

Last week, Microsoft declined offering “behavioral remedies” to EU such as formally allowing these games to feature on competing consoles, thus complicating things further.

“We’re confident in the deal and its progress, and we know Microsoft is working diligently to get it done. Any suggestion to the contrary is false,” an Activision spokesperson said, denying any trouble.

If approved by international regulators, this would become the largest video game acquisition in history.

Microsoft maintains that this will be a thorough process with regulators, and it is expecting to close the deal by the end of fiscal 2023.