The US Federal Trade Commission (FTC) is once again challenging Microsoft, alleging that the tech giant's recent layoffs are in conflict with the promises made during its pursuit to take over Activision Blizzard. The complaint emerged in response to Microsoft's announcement outlining plans to slash around 1,900 jobs across its Xbox, Activision Blizzard, and ZeniMax teams.
The FTC underscores this discrepancy by citing Phil Spencer’s memo to staff, following the layoff announcement. Spencer alluded to diminishing "areas of overlap," a statement the FTC argues is not in line with Microsoft's earlier pledges that the firms would maintain their independent operation, regardless of the merger.
In the latest filing, the FTC says, “Microsoft’s recently-reported plan to eliminate 1,900 jobs in its video game division contradicts the feedback it gave to this Court.” Additionally, the agency voiced fears that the mass job cuts may hamper its ability to impose effective relief should Microsoft’s takeover of Activision be ruled as a violation of competition law.
Notably, the FTC had previously made a failed attempt to halt the merger by seeking a temporary injunction, last summer. Despite the setback, the regulatory body hasn't given up its fight. It lodged an appeal in September, just about a month before the deal was officially sealed.
As the FTC’s battle with Microsoft continues, fans of Activision Blizzard and Microsoft games are eagerly waiting for updates on their favorite games.