The U.S. Federal Trade Commission (FTC) has written to the 9th Circuit Court of Appeals, taking issue with Microsoft‘s recent layoffs across Activision Blizzard. The FTC argued that Microsoft misled the court when it said that it would allow Activision Blizzard to operate as a limited-integration entity pending the outcome of FTC’s case against the merger.
Activision Blizzard layoffs contradict Microsoft’s statements, says FTC
In its letter, first spotted by Twitter user gamesfray, FTC recalled that Microsoft promised to maintain pre-merger status quo when it comes to Activision Blizzard. In doing so, Microsoft reassured the court that should the FTC win, it’ll be in a position to divest.
“Microsoft’s recently reported plan to eliminate 1,900 jobs in its video game division, including in its newly acquired Activision unit, contradicts the foregoing representations it made to this court,” part of the FTC’s letter reads. “The reported elimination of thousands of jobs undermines the FTC’s ability to order effective relief should the pending administrative proceeding result in a determination that Microsoft’s acquisition of Activision violated Section 7 of the Clayton Act.”
The FTC has asked for injunctive relief to prevent Microsoft from carrying out its planned cuts until the administrative proceeding is complete.