Microsoft (MSFT.O) is likely to receive an antitrust warning from the European Union over its $69 billion bid for Activision Blizzard (ATVI.O), people familiar with the matter said. It can be another challenge to complete the deal.
The people said the European Commission is preparing a charge sheet known as a Statement of Objection outlining its concerns regarding the deal that will be sent to Microsoft in the coming weeks.
The EU antitrust watchdog, which has set an April 11 deadline for its decision on the deal, declined to comment.
Microsoft said: “We continue to work with the European Commission to address any market concerns. Our goal is to bring more games to more people, and this deal will further that goal.”
The US software giant and Xbox maker announced the acquisition in January last year to help it better compete with leaders Tencent (0700.HK) and Sony (6758.T).
However, concerns have been voiced by regulators in the US and UK, with the US Federal Trade Commission going to court to block the deal.
Other sources familiar with the matter said that Microsoft is expected to provide solutions to EU regulators in an effort to avoid an indictment and shorten regulatory action.
On the other hand, the information technology giant may announce its plans to reduce the number of employees in the coming days, noting that the bad economic environment has become the main reason for this decision.
Microsoft is expected to lay off regarding 5% of its employees worldwide in January, which is approximately 10,000 to 11,000 jobs.
