FTC Files Complaint Against Microsoft , After Activision Layoffs.
FTC Files Complaint Against Microsoft , After Activision Layoffs.
On Jan. 30, Microsoft's gaming division laid off
1900 people, including at Activision Blizzard. .
Now, the Federal Trade Commission (FTC)
has accused Microsoft of not upholding its promise
to let Activision operate independently after being
acquired for $69 billion, Engadget reports. .
Now, the Federal Trade Commission (FTC)
has accused Microsoft of not upholding its promise
to let Activision operate independently after being
acquired for $69 billion, Engadget reports. .
Microsoft’s recently-reported plan to
eliminate 1,900 jobs in its video game
division, including in its newly-acquired
Activision unit, contradicts the foregoing
representations it made to this Court, FTC, via complaint.
Specifically, Microsoft reportedly has stated
that the layoffs were part of an 'execution
plan' that would reduce 'areas of overlap'
between Microsoft and Activision, , FTC, via complaint.
... which is inconsistent with
Microsoft’s suggestion to this Court
that the two companies will operate
independently post-merger, FTC, via complaint.
Microsoft previously suggested that layoffs
wouldn't need to be made if its "vertical acquisition"
of Activision was approved because there would
be no job redundancies, Engadget reports. .
Microsoft previously suggested that layoffs
wouldn't need to be made if its "vertical acquisition"
of Activision was approved because there would
be no job redundancies, Engadget reports. .
The FTC has asked for a temporary acquisition
pause so that it can further investigate. .
The agency has continually challenged the acquisition since it was approved by the U.K.'s Competition and Markets Authority last year.
If the FTC continues to push its antitrust concerns, it's possible that Microsoft could be forced to
divest Activision Blizzard, Engadget reports. .
6,000 video game workers have already
been laid off across the industry this year.
Last year, about 10,500 were laid off.