Referee John Brooks took a few seconds to point to the penalty spot after Ballard and Konsa hit the ground, but once he did the VAR stuck with his decision.
Konsa was certainly committing a foul, though Ballard did appear to have a hold of the Arsenal man.
“This should never happen, it’s not fair, and I am sad, very sad, in that sense,” said Arteta, who was booked in the first half for repeatedly leaving his technical area.
“I’m making it very clear publicly because it’s for the game, it’s not only for Arsenal, this cannot happen at this level.
“It’s not acceptable, I’ve watched it 20 times and can’t think of why it was given.”
This season, Premier League referees have been instructed to clamp down on grappling at corners, something that became a big talking point last term.
“With the new laws trying to get rid of the grappling, Konsa is all over Ballard. You have to be looking at the ball,” former England midfielder Karen Carney said on TNT Sports.
“Ballard was holding Konsa’s arm but you run the risk,” added former Arsenal defender Martin Keown.
“They want to stamp down on it so there is no point arguing about it.”
However, Arteta was not alone in questioning the decision.
“It’s absolutely not a penalty. He has got it completely wrong, Konsa’s shoulder is pulled down by Ballard and he lands on top,” former Wales defender Ashley Williams said on BBC Match of the Day.
“It’s like a perfect toss in judo. It’s very clever by Ballard but in no way is it a penalty.”