Microsoft Stock (NASDAQ:MSFT)
As a result of Microsoft’s (NASDAQ:MSFT) proposed $69 billion purchase of video game producer Activision (NASDAQ:ATVI), the European Union is anticipated to issue an antitrust warning. Despite that, Microsoft stock surged.
According to a report by Reuters, which cited people familiar with the situation, the European Commission is preparing a charge sheet known as a statement of objections regarding the megadeal. This charge sheet is expected to be sent to Microsoft (MSFT) in the coming weeks.
Microsoft responded to Reuters, saying that their collaboration with the European Commission to resolve any marketplace issues is ongoing. This partnership will bring more games to more people, which is one of our primary goals and will help us achieve that objective.
According to Reuters, Microsoft is anticipated to attempt to soothe the regulator by sending proposed remedies to the EC. However, the authority is not expected to be sympathetic to the concessions until it sounds out its charge sheet. Microsoft is expected to try to pacify the regulator.
The European Commission has to complete its investigation of the Activision purchase by April 11 or face a penalty. The European Commission did not provide Reuters with a response. In November, the European Commission said it would launch a comprehensive inquiry into the purchase, expressing concerns that the transaction may “seriously restrict competition.”
The potential warning from the EU comes after the Federal Trade Commission in the United States filed a lawsuit last month to block the deal, calling it the biggest regulatory threat to Microsoft in the past 20 years and stating that the deal would allow Microsoft to suppress competition for its Xbox videogame consoles and its subscription gaming business. The EU could issue a similar warning in response to this. An administrative law judge will consider the FTC’s request to halt the Activision merger in August. The FTC has scheduled the hearing.
The antitrust authority in the United Kingdom decided to push back the evaluation of the purchase from early March to the end of April earlier this month.
According to a story that was published on Thursday by Bloomberg, Google and Nvidia have joined Sony in raising reservations with the $69 billion transaction.
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