The U.Ok.’s competitors watchdog on Wednesday opened an investigation into Microsoft‘s acquisition of online game writer Activision Blizzard.

It marks one of many first probes by a serious antitrust enforcer into the $68.7 billion deal, which was introduced in January.

In an announcement, the U.Ok.’s Competitors and Markets Authority mentioned its investigation would “take into account whether or not the deal may hurt competitors and result in worse outcomes for customers – for instance, via increased costs, decrease high quality, or diminished alternative.”

The CMA has set a Sept. 1 deadline for its preliminary resolution. The regulator mentioned it desires suggestions from curiosity third events, with a session working till Jul. 20, 2022.

Microsoft was not instantly obtainable for remark when contacted by CNBC.

The acquisition has big implications for the $190 billion online game business, handing management of extremely profitable franchises together with Name of Responsibility, Sweet Crush and Warcraft to one of many world’s greatest tech corporations.

Microsoft hopes the acquisition will assist it within the race to construct the so-called “metaverse,” a hypothetical community of enormous digital worlds. Numerous different corporations are vying for a job within the area, together with Fb father or mother firm Meta and Sony.

Nonetheless, analysts are skeptical in regards to the probabilities of a deal being accepted by regulators.

Microsoft is without doubt one of the largest video games console producers alongside Sony and Nintendo, and the corporate is sitting on a rising hoard of first-party content material — together with standard sport collection like The Elder Scrolls and Doom, which it acquired after shopping for Bethesda-owner Zenimax for $7.5 billion.

In the meantime, Activision has been beset by quite a few inside points up to now 12 months, together with accusations of sexual harassment, unionization efforts and walkouts from workers.

Workers on the firm are deeply sad with the administration and have referred to as on CEO Bobby Kotick to resign. Microsoft beforehand mentioned Kotick will keep on as CEO of Activision till after the deal closes.