The Federal Trade Commission (FTC) has raised concerns about Microsoft’s decision to lay off 1,900 employees in the gaming division, which goes against what was previously stated during the antitrust trial related to its acquisition of Activision Blizzard. The FTC expressed that Microsoft’s plans contradict its earlier assurance that the merged company would operate independently and that it would have the ability to divest all of Activision’s businesses if necessary. The layoffs could jeopardize the effectiveness of any potential regulatory action by the agency. Microsoft’s acquisition of Activision Blizzard faced opposition from several regulatory bodies, including the FTC, the European Union, and the UK’s Competitions and Markets Authority (CMA), but ultimately the merger proceeded. The FTC is continuing to challenge the court’s decision to allow the merger. The FTC’s complaint follows the completion of Microsoft’s $69 billion acquisition of Activision Blizzard in October 2023. IGN has sought comments from both Microsoft and Activision Blizzard on the matter.
