FTC seeks pause on Microsoft-Activision deal amid layoff controversy
Just a week following Microsoft’s announcement of nearly 2,000 layoffs within its gaming division, the Federal Trade Commission has raised concerns over Microsoft’s adherence to its initial promises regarding the operation of Activision Blizzard post-acquisition, according to a recent report by Engadget. The FTC’s apprehensions were formalized in a complaint submitted to a federal appeals court on Wednesday, calling for a temporary halt on Microsoft’s acquisition of Activision Blizzard amid ongoing investigations into potential antitrust violations. Microsoft had previously assured the FTC that the acquisition of Activision Blizzard would be managed as a vertical integration, implying that layoffs would be unnecessary due to the absence of overlapping roles. However, the recent job cuts announced on Jan. 30, which impacted employees across Activision Blizzard, ZeniMax, and Xbox, have sparked controversy. Microsoft cited “areas of overlap” between itself and Activision Blizzard as the reason for the layoffs, a statement that the FTC claims contradicts Microsoft’s earlier representations to the court. The FTC’s complaint highlights the contradiction between Microsoft’s initial assurances and its recent actions, stating, “Microsoft’s recently-reported …