EU antitrust regulator seeks input on Microsoft\`s $16bn Nuance deal

European Union's antitrust regulator is taking a deeper look into Microsoft Corp's $16 billion deal for transcription technology company Nuance Communications Inc_ asking customers and competitors to draw up a list of concerns_ according to a questionnaire from last month.

The previously unreported outreach is the most extensive by an antitrust authority since the companies announced the acquisition in April_ according to a person familiar with the matter.

Microsoft declined to comment_ and Nuance did not respond to a request for comment.

After minimal review_ the U.S. Department of Justice in June and the Australian Competition Commission in October said they would not contest the deal. The companies filed for approval from the European Commission's competition bureau last month_ and the regulator has until Dec. 21 to clear the deal or open a bigger investigation.

The companies had expected to close the deal by the end of this year_ but said last month the timeline could slip to early next year.

The questionnaire asks whether Microsoft and Nuance are competitors and whether a tie-up could affect clients and rivals_ including whether Microsoft could favor Nuance over competing services.

Nuance primarily sells transcription technology that is popular among doctors and call centers that want to automate note-talking. Analysts view the deal as bolstering Microsoft's presence in the healthcare market_ and bringing it new voice and medical data to train artificial intelligence offerings in health_ speech and biometric security.

Like other big tech companies_ Microsoft for years has grown its business through acquisitions_ such as in advertising and video gaming. But in the last decade_ Microsoft has avoided the target that recently has dogged its competitors Alphabet Inc's (GOOGL.O) Google_ Facebook Inc (FB.O)_ Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O)_ all of which are facing antitrust lawsuits and investigations on numerous issues.

Steven Weber_ a University of California Berkeley professor studying the intersection of technology and health care_ said possible concerns about the pending deal could include Microsoft forcing its Office suite on Nuance customers by bundling them together.

Nuance has said it serves 77% of U.S. hospitals.

A key to its success has been has ensuring in deals with customers that it could use their data to advance its voice recognition systems_ according to former chief executive Paul Ricci and another former employee.

For instance_ a Nuance contract with Augusta University Medical Center_ obtained by Reuters this year through a public records request_ reads_ "Customer shall provide Nuance access to voice and text data...and grants Nuance a perpetual_ royalty-free license to copy_ use and analyze such data for speech recognition research."

Big cloud vendors such as Amazon and Microsoft typically do not have unfettered access to customers' data for research and development. But the opportunity to acquire those relationships and data explains Microsoft's interest in Nuance_ the former employees said.

Other providers of health transcription technologies include 3M Co and Philips.