People on the Fediverse expected it very much. Meta already was trying to talk to the larger instances "off the record"[1]. Fediverse users are already planning to boycott any instance which federates with Meta to block any Embrace, Extend and Extinguish moves.
[1] https://fosstodon.org/@kev/110592625692688836
edit: More info here: https://wedistribute.org/2023/06/fedipact-blocking-meta/