FTC Files Complaint Against Microsoft After Activision Layoffs

FTC Files Complaint Against Microsoft After Activision Layoffs

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.

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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.

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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.

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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.

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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.

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The FTC has asked for a temporary acquisition pause so that it can further investigate.

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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.

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6,000 video game workers have already been laid off across the industry this year.

Last year, about 10,500 were laid off.