Britain’s antitrust watchdog known as the Competition and Market Authority (CMA), has launched an investigation into Microsoft’s US$68.7 billion deal to buy Activision Blizzard.

The antitrust watchdog said it would take until September 1 to make phase 1 decision on whether the deal between Microsoft and video game maker Activision would reduce competition in the U.K.

The phase 1 investigation will decide whether the transaction is cleared or whether the investigation will move to an in-depth phase 2 review.

“We’re committed to answering questions from regulators and ultimately believe a thorough review will help the deal close with broad confidence and that it will be positive for competition. We expect and think it’s appropriate for regulators to take a close look at this acquisition, “said Lisa Tanzi, Microsoft’s corporate vice president and general counsel.

Microsoft announced plans in January to buy “Call of Duty” maker Activision Blizzard for US$68.7 billion, which will go down in history as the largest deal in the gaming industry once it is completed.

Microsoft’s acquisition of Activision Blizzard will bolster the company’s firepower in the booming videogaming market.

The sources for this piece include an article in Reuters.