The Federal Trade Commission made a Thursday announcement. lawsuit To stop Microsoft from purchasing Activision Blizzard (developers of Overwatch and Call of Duty franchises), FTC claims the deal would give Microsoft a competitive advantage over other gaming companies, effectively creating a monopoly.
Microsoft has announced that the planned acquisitionIt was worth $68.7 Billion in January. It was reportedly the biggest ever deal in video gaming, according to the FTC.
Holly Vedova (Director of the FTC’s Bureau of Competition) stated in a statement that “Microsoft already demonstrated that it can and will withhold material from its gaming competitors.” “Today we want to stop Microsoft gaining control of a leading independent studio that creates games and using it to harm competitors in many dynamic, fast-growing markets.
If the lawsuit is successful, it would be a major stumbling block in Microsoft’s efforts to enter the metaverse, which is still in its infancy. The company has taken several steps in that direction, including joining Meta, main rival Sony, and others to create an “Open Metaverse.”
According to the Metaverse Standards Forum it is designed to encourage coordination and cooperation among companies that are interested in creating the next iteration on the internet.
FTC cited Microsoft’s acquisition of Bethesda Games Studios as the creators of Fallout and Elder Scrolls, and made its Starfield- and Redfall games exclusive for its flagship Xbox console.
Meta and Microsoft have denied that blockchain developers are concerned about Meta and Microsoft dominating next-generation internets and building closed ecosystems. Another concern is the lack of ownership potential for gamers in a metaverse created by major Web2 corporations.
Microsoft may be entering the metaverse but it seems that they don’t intend to allow “Web3” products (such as non-fungible tokens and NFTs) into their existing virtual worlds. NFTs were banned from Microsoft’s game servers in July, including the global phenomenon Minecraft.
The company stated that blockchain technologies were not allowed to be integrated into our client or server applications in order to ensure Minecraft players have a safe, inclusive experience. news post. Blockchain technology cannot be used to create a rare digital asset, nor can Minecraft in-game content like worlds, skins and persona items.
FTC claims that Microsoft will have the ability to manipulate pricing, game quality and player experience for Activision games via rival platforms and services if the Activision Blizzard agreement is completed.
In response to the FTC lawsuit, Activision CEO Bobby Kotick wrote: “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge.”
Jeb Boatman, Senior vice president of Litigation and Regulatory Law at Activision Blizzard sent an open letter to employees Microsoft is claiming that it’s unlikely that its “Call of Duty” video games will be made an Xbox exclusive.
“Microsoft has spent the last year promising global regulators, tens of millions of players, and competing consoles and platforms that they won’t do that,” Boatman wrote. “Do people really think that Microsoft—one of the world’s most respected companies—would risk its reputation and relationships to go back on that promise?”
“The player backlash would be disastrous,” he added. “It would destroy Microsoft’s trust with players and its brand, something Microsoft has spent decades building and protecting.”
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