The FTC seems poised to stop Microsoft in its tracks
•On Thursday, the Federal Trade Commission announced a lawsuit to block Microsoft from acquiring Activision Blizzard, developers of the Call of Duty and Overwatch franchises.
• The FTC alleges the deal would give Microsoft an unfair advantage over its competitors in the gaming industry, essentially creating a monopoly.
• Microsoft has already shown that it can and will withhold content from its gaming rivals,” Holly Vedova, Director of the FTC’s Bureau of Competition, said in a statement.
• The lawsuit, if successful, would put a snag in Microsoft’s push into the still-nascent metaverse.
• The Metaverse Standards Forum says it aims to foster coordination and cooperation between companies looking to create the next iteration of the internet. • Blockchain developers have expressed concerns about companies like Microsoft and Meta dominating the next internet and building closed ecosystems and walled gardens which Meta has denied Other concerns relate to the lack of ownership potential that metaverse developed by major Web2 corporations would have for gamers While Microsoft is stepping into the metaverse it appears that the company has no intention of allowing”Web3″ products like non-fungible tokens NFTs into its existing virtual worlds In July the company banned NFTs on its game servers including global phenomenon
On April 1st, 2021, Microsoft announced their acquisition of Activision Blizzard for $7.5 billion. This deal has some gamers wondering about the implications for their gaming experience. What is the Microsoft-Activision Blizzard Acquisition? What is the Metaverse? And what are the implications of this lawsuit for gamers? Let’s take a deeper look at what this all means.
The Federal Trade Commission’s Allegations Against Microsoft
The Federal Trade Commission (FTC) alleged that Microsoft has been using its market power to create an unfair advantage in gaming and other digital products, such as streaming services. The FTC argued that Microsoft was leveraging its own platforms and services to exclude competitors from accessing certain content or features. Furthermore, by blocking access to its own products or services, the FTC alleged that Microsoft was able to effectively limit competition in these markets as well as increase their own profits.
Impact of the Lawsuit on Microsoft’s Push into the Metaverse
The acquisition of Activision Blizzard comes at a time when Microsoft is pushing into a new area called the Metaverse. This is an interconnected virtual world where people can interact with each other in a shared environment created by major web 2 companies such as Google, Apple, and Amazon. The idea behind this metaverse is to enable users to travel between different sites and experiences without having to leave one page or platform. However, many blockchain developers have expressed concerns about closed ecosystems and walled gardens created by big web 2 corporations like Microsoft that could ultimately limit ownership potential for gamers in this new virtual world.
Microsoft’s Banning of Non-Fungible Tokens (NFTs) on its Game Servers
Finally, it’s worth mentioning that just days after announcing their acquisition of Activision Blizzard, Microsoft banned non-fungible tokens (NFTs) from being used on its game servers due to concerns over copyright infringement issues. While NFTs are becoming increasingly popular among gamers as a way to collect digital assets such as avatars or weapons within games like Minecraft and Fortnite, there are still questions surrounding who owns these assets if they are purchased within a game hosted by a major corporation like Microsoft.
It remains unclear exactly how much impact this acquisition will have on gamers worldwide but it’s clear that it will likely be felt in some way or another. It could mean more exclusive content or features available only through Xbox Live or increased access to new gaming experiences through the Metaverse but only time will tell how this acquisition plays out in terms of consumer rights and ownership potential within games hosted by major corporations like Microsoft.