The FTC filed a complaint against Microsoft over layoffs in the gaming division
The US Federal Trade Commission (FTC) has asked the appeals court to look into the situation with mass layoffs at Microsoft. On January 25, the corporation announced its decision to lay off 1,900 people from Xbox, Activision Blizzard and ZeniMax Media.
In the complaint, the FTC said that Microsoft's decision contradicts the promises made during the trial for the purchase of Activision Blizzard.
According to the FTC, Microsoft insisted at the trial that it was conducting a vertical, not a horizontal merger. The corporation noted that public opinion is more likely to ban transactions "in horizontal mergers, when competing companies integrate their operations and often get rid of duplication in the process." At the same time, Microsoft claimed that after the completion of the Activision deal, Blizzard would maintain the status quo and continue to work independently.
However, the FTC recalled that during the announcement of the layoffs, Microsoft just said that it had recently identified "areas of duplication" and wanted to eliminate them. According to the agency, this proves that Microsoft has violated its obligations.
The FTC also added that the layoffs would prevent it from effectively helping Activision Blizzard employees if the US authorities still recognize the deal as illegal.
Earlier it became known that almost half of the 1,900 people being laid off are employees of Activision Blizzard's California divisions. By March 30, the company is going to lay off 899 people in California.