The US Federal Trade Commission has filed a new lawsuit against Microsoft over Activision Blizzard's firing of 900 employees
The US Federal Trade Commission (FTC) was the main opponent of the merger between Microsoft and Activision Blizzard, and although the final completion of the deal occurred in October 2023, the government agency continued to pressure the corporation and tried to overturn the regulators' decision.
Here's What We Know
Microsoft has announced a massive wave of layoffs: 1,900 Xbox, Activision Blizzard, ZeniMax and Bethesda employees will be out of work that 1,900 employees from internal divisions, including Xbox, ZeniMax and Bethesda, would be laid off in the near future. However, Activision Blizzard will be the most affected by the cuts - 900 people will be laid off from there, according to The Verge.
The FTC saw the decision as a violation of Microsoft's promise that Microsoft and Activision Blizzard would act independently.
The trade commission took Microsoft to a federal appeals court because it found that the corporation had broken its promises, thereby misleading the commission, employees and the public.
U.S. law provides serious penalties for knowingly misleading the court and the FTC's appeal could have far-reaching consequences.
The FTC has complained to a federal appeals court about Microsoft's 1,900 Activision Blizzard and Xbox layoffs. The FTC argues the move undermines Microsoft's claims that Activision Blizzard would operate independently https://t.co/d7pQTCpQfn pic.twitter.com/xR2T6VgQwL
- Tom Warren (@tomwarren) February 7, 2024
Source: The Verge
