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In a recent ontogenesis , the Federal Trade Commission ( FTC ) has lodged a formal letter of charge against Microsoft , asserting that the technical school giant ’s recent layoff within its video secret plan workforce are in direct contradiction to statements made during an antitrust tribulation regarding its skill of Activision Blizzard .
Update to this :
Microsoft has respondedto FTC ’s letter saying that Activision was blend to make the cuts before the merger . This could also represent what Microsoft was pop off to do .
This may sound like an exculpation , but it likely is n’t . We saw stack of layoffs last year alone , and these few month have shown that no studio is safe from layoffs . If anything , this may really be the truth , and the two company just require to wait until after the buyout to cut people out so they would n’t lose market economic value before the purchase .
newfangled : Microsoft lawyers have respond to yesterday ’s letter of the alphabet from the FTC re : late steep job cuts at Activision Blizzard , saying : " Activision was already planning on eliminating a significant number of jobs while still function as an self-governing caller . “https://t.co / kwxQ0rsSKgpic.twitter.com / MA6vGyaMG8
Original article :
The FTCspecifically citedMicrosoft ’s representation to the homage , accentuate that “ the post - merger fellowship will be structure and manoeuvre in a way that would readily enable Microsoft to divest any or all of the Activision businesses as robust market place participants in the unconvincing case that such a divestiture is tell . ” This statement is now the reason the FTC wants to review what ’s been blend in on with the 1,900 layoffs late announced by Microsoft ( thanksThe Verge ) .
concord to the FTC ’s complaint , Microsoft portrayed the layoffs as part of an “ execution plan ” aimed at reducing “ region of overlap ” between Microsoft and Activision . This stance conflicted with Microsoft ’s former authority to the court that the two entity would operate independently follow the merger .
The commission also argued that the rumored personnel casualty of many jobs stool it hard for them to furnish proper avail if it turns out that Microsoft ’s buyout of Activision broke the rule ( the FTC name Section 7 of theClayton Actas an example ) .
The complaint letter was sent to Molly Dwyer , Clerk of Court at the U.S. Court of Appeals for the Ninth Circuit , pointing out the big difference between what Microsoft allege before and what it did with the layoff . This has go the FTC to ask for a court order to stop Microsoft from doing certain things until the administrative physical process is finish .
The FTC wants to deal with the claim differences between what Microsoft said and what it did . This berth score you think about what it intend when big companies make promises during crucial deals and what we do when those seem busted .
Even if Microsoft is cleared and can continue without any issues , they ’ve made a hold up impact on future companies . Microsoft has in spades made it hard for any other company to try something similar after this .
