- The FTC claims Microsoft would gain an unfair edge in the gaming sector.
- If the case prevails, it will slow down Microsoft’s expansion into the metaverse.
A lawsuit to prevent Microsoft’s acquisition of Activision Blizzard, makers of the Call of Duty and Overwatch series, was revealed on Thursday by the Federal Trade Commission. The FTC claims Microsoft would gain an unfair edge in the gaming sector as a result of the merger. Thereby turning it into a monopoly.
Moreover, the deal, which Microsoft disclosed in January, is said to be valued at $68.7 billion. The Federal Trade Commission dubbed it the biggest transaction in the history of the video game industry.
Holly Vedova, Director of the FTC’s Bureau of Competition, said in a statement:
“Microsoft has already shown that it can and will withhold content from its gaming rivals. Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”
Dominance by Web2 Corporations
If the case prevails, it will slow down Microsoft’s expansion into the developing metaverse. The firm has made a number of measures in that regard. Including working with Meta, major competitor Sony, and others to establish an “Open Metaverse.”
Furthermore, the Metaverse Standards Forum has set out to facilitate communication and collaboration amongst businesses working on the next generation of the internet.
Moreover, the FTC highlighted Microsoft’s decision to make its Starfield and Redfall games exclusive to its flagship Xbox platform. As well as its purchase of Bethesda Games Studios, the makers of the Fallout and Elder Scrolls franchises.
Despite Meta’s denials, blockchain developers are worried about the company’s potential dominance of the future internet and the creation of closed ecosystems and walled gardens, while gamers are worried about the lack of ownership possibilities in a metaverse established by large Web2 enterprises.
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