The US Trade Commission Blocks Microsoft's Attempts to Acquire Activision Blizzard, Here's the Reason!

Activision Blizzard, is prohibited from being acquired by Microsoft. (photo: Twitter @ATVI_AB)

JAKARTA - Microsoft Corp's efforts to acquire Activision Blizzard, as a first step towards building the Metaverse initiative, are now facing obstacles after intervention by the United States Federal Trade Commission (FTC).

The FTC is seeking to block Microsoft from acquiring the gaming giant as a way to promote fair competition in high-performance game consoles and subscription services. However, Microsoft CEO and Chairman, Satya Nadella, previously stated that the acquisition would "play a key role in the development of the platform metaverse."

In a recent complaint, the FTC argued that Microsoft and Sony had "controlled" the high-performance gaming industry, via the XBOX and Play Station consoles, and that acquiring Activision Blizzard would increase Microsoft's power in the sector.

Holly Vedova, Director of the FTC's Competition Bureau, noted Microsoft's record in acquiring ZeniMax and limiting the publication of popular games, such as Starfield and Redfall, to XBOX consoles.

“Microsoft has shown that it can and will withhold content from its gaming competitors,” Vedova said, as quoted by Cointelegraph.

The complaint speculates a similar fate for Call of Duty, World of Warcraft, Diablo, and Overwatch, among other games, that are included in the Activision ecosystem. However, the FTC's concerns indirectly impact Microsoft's metaverse initiatives.

In July, the FTC filed a lawsuit against social media giant Meta, alleging its "primary target is to own the entire 'metaverse'." has killed off competitors that are weaker and less able to compete seriously. Meta is accused of getting more users, content, and developers.

In October, Meta shareholders urged the company to reduce its annual investment. According to Brad Gerstner, CEO and founder of technology investment firm Altimeter Capital, Meta's $10 billion to 15 billion a year investment building the metaverse could take decades to turn a profit.

“An estimated 100B+ investment in an unknown future is huge and scary, even by Silicon Valley standards,” said Gerstner.