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FTC accuses Microsoft of misrepresenting its Activision Blizzard plans after layoffs

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delete12345

delete12345

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Complaint filing notice linked above.

/u/marketrent said:
Jessica Conditt covers a complaint filed by the Federal Trade Commission:
  • In its arguments to the FTC over the past two years, Microsoft said it would treat Activision Blizzard as a vertical acquisition and suggested that it wouldn't need to institute layoffs, since there would be no redundancies.
  • On January 30, Microsoft announced it was cutting 1,900 jobs across Activision Blizzard, ZeniMax and Xbox after identifying "areas of overlap" specifically between Microsoft and Activision Blizzard. This discrepancy is the core of the FTC's complaint.
  • "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," the FTC's complaint said.
  • "Specifically, Microsoft reportedly has stated that the layoffs were part of an 'execution plan' that would reduce 'areas of overlap' between Microsoft and Activision, which is inconsistent with Microsoft's suggestion to this Court that the two companies will operate independently post-merger."
  • In Wednesday's complaint, the FTC argued that the recent layoffs also undermine its own ability to order relief for employees who were negatively affected in the acquisition.

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www.engadget.com

FTC accuses Microsoft of misrepresenting its Activision Blizzard plans after layoffs

The FTC is accusing Microsoft of contradicting its pledge to allow Activision Blizzard to operate independently post-acquisition.
www.engadget.com www.engadget.com

Close if old. I did a cursory search for "FTC" and "Microsoft". Nothing.
 
Ashes of Dreams

Ashes of Dreams

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This story is never going to end, huh?

Sadly I feel like no matter what happens here it won't do anything for the 1,900 who lost their jobs.
 
Star-Lord

Star-Lord

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I mean layouts were gonna happen but that quickly and to that degree of 2000 out the gate is a bit soon
 
BaconHat

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OnionPowder said:
then MS shouldn't have argued they wouldn't to the FTC
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They actually argued there would be no job trimming after a huge acquisition? And the FTC actually believed that? I don't think i've seen a huge inquisition where the new parent company does not do redundancy cutoffs after in my life.
 
Gordon's Tulpa

Gordon's Tulpa

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Aaronrules380 said:
I mean, anyone who bought that there wouldn't be redundancies was a complete moron
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Microsoft stating that there wouldn't be redundancies so the burden of stupidity lies with them i guess. Anyone believing that consolidation is a net plus and that a hyper capitalist accelerator like MS wouldn't be ruthless about is is also, like, not smart.

  • In its arguments to the FTC over the past two years, Microsoft said it would treat Activision Blizzard as a vertical acquisition and suggested that it wouldn't need to institute layoffs, since there would be no redundancies.
 
Kazooie

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But did they say they'd not do any firings? Because "they will act independently" is different from "there are no redundancies that we will make up".
 
coldzone24

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Microsoft probably expected this and some fines, but wrote it down as "cost of doing business". Now that the acquisition has already gone through, the FTC's bite is a lot weaker unfortunately.
 
JohnnyToonami

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Surprised it took this long for this thread to get made here....

I see folks here are going with all of those laid off were "redundant" employees which is bullshit and not true according to some of the folks laid off.
 
Specific Power Ranger

Specific Power Ranger

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Weren't a lot of game Devs fired in this ? I'm not sure you can call that redundancies and overlap if the plans were for those studios affected to continue to operate largely independent.
 
DontHateTheBacon

DontHateTheBacon

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Lol

Everyone knew this deal was bad for the industry, we just didn't know how bad and the ironic consequences

But this is America baby, ain't nothing going to tell a megacorp what they can and can't do!
 
Makoto Yuki

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That's some bullshit, imagine the false sense of security MS was offering when it came to job security.
 
Ultima_5

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Iļø meanā€¦ at most would this be a fine for MS? not like they're gonna take away activision at this point
 
Makoto Yuki

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Ultima_5 said:
Iļø meanā€¦ at most would this be a fine for MS? not like they're gonna take away activision at this point
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That's the sad reality of the situation. MS got what they wanted, got record profits, and will probably get a slap on the wrists.

I sincerely hope something comes of this.
 
IIFloodyII

IIFloodyII

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MS probably expected it, a slap on the wrist fine is probably all that will come from it and then by the next time they want to buy another company they will have probably already fully defanged the FTC.
 
entremet

entremet

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Corporations are way too powerful in this country. Not sure this will do much.
 

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DontHateTheBacon said:
Lol

Everyone knew this deal was bad for the industry, we just didn't know how bad and the ironic consequences

But this is America baby, ain't nothing going to tell a megacorp what they can and can't do!
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There were plenty of people in the FTC thread that said it would be fantastic for the industry. People were getting banned who spoke out against it.
 
Makoto Yuki

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Realistically, what can the FTC do? Genuinely curious. Seems very cut and dry lying to get the deal sealed, there has to be some ramifications on MS, even if small.
 
Dyle

Dyle

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Microsoft will happily eat the fine, that's just the cost of doing business at this scale
 
Mivey

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Wasn't the FTC fighting against this in the courts anyway? If anything, it just goes to show how toothless US regulatory power is when it comes to these things. Companies can lie their asses off, courts wave it through and then get to be all: pikachu.gif
 
mugurumakensei

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Makoto Yuki said:
Realistically, what can the FTC do? Genuinely curious. Seems very cut and dry lying to get the deal sealed, there has to be some ramifications on MS, even if small.
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Nothing?

They'd have to prove ABK had not overhired before being bought. They'd have to prove Microsoft had not overhired. They'd have to make the case that limited integration also means Microsoft has no say on any budget. In all three cases, they'd lose. In fact, this is more or less a waste of resources. Microsoft won't even get fined for this cause no it's not cut and dry.
 
Calabi

Calabi

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Its depressing how predictable all this. I'm expecting behind the scenes the FTC new this would happen but are maintaining the farce of law and order for the publics sake. It seems all we can do at this stage is wait for capitalism to run itself down and eat everything that's left because no one is going to stop it anymore.
 

Skeff

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Kazooie said:
But did they say they'd not do any firings? Because "they will act independently" is different from "there are no redundancies that we will make up".
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They will act independently is directly at odds with "areas of overlap" which was the reason for redundancies.

Maybe if they hadn't specifically said that then they wouldn't have this complaint.
 
CabooseMSG

CabooseMSG

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Sure it may suck that ABK hired another 7000 people after you agreed to acquire them, but MSFT is worth $3 trillion dollars. You could easily make it work, fuck the shareholders. Never ending, constant growth is a cancer on modern society.
 
That1GoodHunter

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MS will be just fine. However, next time they have to get through the FTC for another publisher acquisition? šŸ˜¬
 
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