Microsoft Faces Complaints Over Activision Blizzard Takeover
The Federal Trade Commission has issued a complaint against Microsoft. According to the FTC, the announcement of mass layoffs conflicts with the company's statements during a trial prior to its purchase of Activision Blizzard.
UPDATE (8:10 PM)
Microsoft has responded to the FTC's allegations by stating that the Activision Blizzard holding company had independently planned mass layoffs before the Redmond giant finalized its acquisition (via gamesindustry.biz).
The Federal Trade Commission (FTC) isn't relenting in its pursuit of Microsoft, even following a court defeat. American officials are accusing the Redmond giant of providing false assurances during the acquisition process of Activision Blizzard. As a result, the FTC filed a formal complaint with a federal appeals court (via The Verge/PC Gamer).
The commission's actions stem from extensive layoffs conducted by Microsoft, which the company justified by, for instance, "identifying overlapping areas" between the company's structures and Activision Blizzard.
- According to the FTC, the company is denying its own previously made statements, claiming that Activision Blizzard was to be only "partially integrated" and essentially operate independently.
- Furthermore, this raises doubts about the assurances from the Redmond giant that in the event of the "FTC's success in administrative proceedings" (meaning blocking the acquisition of AB), Microsoft will be able to "easily" divest all or some of the entities operating within Activision Blizzard.
- The Commission also agues that laying off almost 2,000 employees could effectively hinder Microsoft's "handover" of the acquired publisher.
Thiso last point suggests that even the FTC itself may not have any illusions about the effectiveness of its complaint as a means of taking Activision Blizzard from Microsoft (although this isn't impossible in light of past precedents). However, if we agree with the Commission's argument, it's not surprising that it opposes the inconsistency of the actions of the Redmond giant, which appears to be retracting from previous assurances just four months after the "purchase."
