In its statement, the European Commission said it believed the new company would leave room for competitors, noting that Fox and Sky were active in different markets.
UK Culture Secretary Karen Bradley has said she is "minded" to order an Ofcom investigation.
Rupert Murdoch's 21st Century Fox is offering £11.7bn for the 61% stake in Sky it does not already own.
Both Sky and Fox are controlled by businessman Rupert Murdoch, who also owns the Times and the Sun newspapers.
United Kingdom watchdog Ofcom has been tasked with assessing whether a combined Fox and Sky is "fit and proper" to hold a broadcasting licence, based on a public interest test.
The EU Commission, which is set to publicly deliver its verdict on the takeover deal later today, declined to comment to Reuters.
Fox, the world's fourth largest entertainment company and the maker of hit TV shows such as The Simpsons and Modern Family, already owns 39.1% of Sky.
Chinese president Xi Jinping arrives in USA for talks with Donald Trump
For him, as for many here, the military option that the Trump administration said remains "on the table" is unthinkable. Trump wants China's help ending North Korea's testing of nuclear weapons.
The European Union's executive body, which reviewed the transaction for antitrust issues, gave it unconditional approval after concluding the proposed transaction raised no competition concerns in Europe.
The European Commission has given its go-ahead to Twenty-First Century Fox (FOX -0.5%, FOXA -0.4%) to acquire the rest of Sky (SKYAY +0.4%), noting little overlap between the two.
21st Century Fox noted that It now looks forward to continuing to work with United Kingdom authorities and is confident that the proposed transaction will be approved following a thorough review process.
While the United Kingdom mulls possible action, the European Commission approved the deal "unconditionally".
During the 2010 takeover bid by News Corp, which was derailed by the phone hacking scandal at the company, Murdoch reached an agreement with the government to spin off Sky News to satisfy media plurality concerns.
Existing regulators in the UK, Germany and Austria would prevent Sky from shutting out its rivals.