Concerned about Microsoft's proposed acquisition of Activision Blizzard, the European Commission has launched a formal probe. In response to concerns raised about the deal's potential impact on competition, the European regulator confirmed on Tuesday that it has launched a "phase II" probe into the $68.7 billion transaction.

The Commission will have until March 23, 2023 to make a final decision on the merger (or 90 business days). It asserted that preliminary research showed the purchase may drastically reduce competition in a variety of markets.

At a time when the gaming sector is becoming increasingly consolidated, regulators around the world are investigating the planned merger due to antitrust concerns. Although the merger has been green-lit by Saudi Arabia and Brazil, it is currently being investigated by the UK's Competition and Markets Authority.

In order to make a final decision by March 1, it is currently soliciting opinions on the potential acquisition. The acquisition might be approved by the US Federal Trade Commission as soon as this month. Microsoft's head of gaming Phil Spencer recently stated that he believes regulators' attentive attention is "fair" and "warranted" and that he is still optimistic that the merger will be authorized.