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If the FTC sues Activision, Microsoft’s Metaverse ambitions may fail

The Federal Trade Commission filed a lawsuit on Thursday to stop Microsoft from buying Activision Blizzard, the company that makes Call of Duty and Overwatch. The FTC says that the deal would give Microsoft an unfair advantage over its rivals in the gaming industry, making Microsoft a monopoly. Metaverse News is trying to cover this strange news. You can follow the latest news through us.

In January, Microsoft said that it might buy the company for an estimated $68,7 billion. It was called the biggest deal in the history of the video game industry by the FTC.

Holly Vedova, who runs the FTC’s Bureau of Competition, says that Microsoft has shown in the past that it can and will hide information from its gaming competitors. “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.”

If the case is successful, Microsoft would not be able to join the new metaverse. The company has taken several steps in this area, including forming an agreement with Meta, Sony, and others “”Approach the Metaverse.”

The Metaverse Standards Forum says that its goal is to help companies working on the next generation of the Internet coordinate and work together.

The FTC brought up the fact that Microsoft bought Bethesda Titles Studios, which made games like Fallout and Elder Scrolls, and that Starfield and Redfall were only available on its flagship Xbox system.

Blockchain developers are worried that companies like Microsoft and Meta will control the next internet and create closed ecosystems and walled gardens, which Meta has denied. They are also worried that gamers won’t be able to own anything in a metaverse made by big Web2 companies.

Microsoft doesn’t seem to want to add “Web3” goods like non-fungible tokens (NFTs) to its existing virtual worlds. In July, the company banned NFTs from its gaming servers, which are used by Minecraft, which has become a worldwide phenomenon.

“To ensure that Minecraft players have a safe and inclusive experience, blockchain technologies are not permitted to be integrated inside our client and server applications. Nor may Minecraft in-game content such as worlds, skins, persona items, or other mods, be utilized by blockchain technology to create a scarce digital asset,” the company said in a news post.

The FTC says that if the Activision Blizzard merger is allowed, Microsoft will be able to and want to hurt competition by changing the prices, game quality, and user experience of Activision games on competing platforms and gaming services.

Activision’s CEO Bobby Kotick responded to the FTC action by saying, “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge.”

Activision Blizzard’s Senior Vice President of Litigation, Regulatory, and Public Policy Law, Jeb Boatman, wrote an open letter to employees in which he said that Microsoft is very unlikely to make “Call of Duty” games that only work on Xbox.

“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,” wrote Boatman. “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’s response would be terrible “He kept going. It would ruin Microsoft’s brand, which the company has spent decades building and protecting, as well as its users’ trust.

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About Daniel P.

If the FTC sues Activision, Microsoft's Metaverse ambitions may failDaniel is a Web content creator and technical writer who loves talking about Web3, NFTs and other blockchain-related topic and news.

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