As part of the investigation, the Commission will preliminary investigate potential competition concerns in the market for heavy-duty gas turbines which are used in gas-fired power plants.
The acquisition deal forms part of GE’s plan to mainly focus on industrial operations while moving away from finance, reports Reuters.
Commissioner Margrethe Vestager, in charge of competition policy, said: "We are concerned that the proposed acquisition might not only lead to higher prices but also result in less choice for customers and less innovation in the sector.
"Technology is and will continue to be crucial to help Europe meet its environmental commitments. Therefore, it is essential to maintain competition in the heavy-duty gas turbines market."
The EC’s final decision on the merger is expected by 08 July 2015.
The Commission also claims that transaction would halt the production of certain models of Alstom heavy duty gas turbines (HDGTs) and would not release its advanced HDGT technology into the market.
US multinational conglomerate company GE operates through the business department including power and water, oil and gas, energy management, aviation, healthcare, transportation, and capital.
Alstom, a French multinational company, provides services in electricity generation and rail transport markets.
