Recently, the US Federal Trade Commission renewed its opposition to Microsoft’s acquisition of Activision Blizzard. The FTC filed a complaint with the US Court of Appeals, emphasizing that Microsoft’s termination of almost 2,000 employees, many of whom were from Activision, contradicts promises made during the acquisition process. Although it was initially stated that Activision Blizzard would continue to operate independently after the merger, Microsoft laid off hundreds of employees at the company shortly after the deal was finalized.
The FTC also pointed out that if it successfully overturns the $69 billion merger, it would face difficulties in providing effective relief due to the significant layoffs at Activision Blizzard. This is not the first time the Federal Trade Commission has taken action against Microsoft regarding the Activision Blizzard merger. The organization previously attempted to block the acquisition, citing concerns about creating a monopoly and restricting fair competition in the gaming industry.
Familiar Territory
Last year, the Microsoft x Activision Blizzard merger dominated headlines worldwide, sparking numerous significant stories and leaks about the future of Xbox and Activision. Despite the fanfare, the deal was finalized in December at $69 billion, yet the FTC remains involved in the matter.
In an open letter to the US Court of Appeals, the Federal Trade Commission referenced Microsoft’s statement regarding the layoffs, which contradicts their suggestion that the two companies would operate independently post-merger. While this situation is complex, many anticipate that the FTC’s efforts to overturn the acquisition will not succeed, considering the deal was approved by various regulatory bodies globally.
US Consumers Spent $57.2 Billion on Gaming in 2023
Recent developments have suggested that Microsoft plans to bring Xbox games to other platforms. With ongoing developments, the timing of the FTC’s response from the US Court of Appeals remains uncertain, but we will continue to cover the news as it unfolds.
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