At the center of the FTC’s argument lies the obvious contradiction between Microsoft’s earlier assurances and its current actions. During the preliminary merger assessment course of, Microsoft informed the courts that Microsoft and Activision Blizzard would function as separate entities following the merger. The tech large had additionally promised the court docket that it will keep the pre-merger establishment.

However, Microsoft’s current choice to chop greater than 1,900 jobs in its online game division additionally included Activision staff. The FTC argues that had Activision been actually impartial as Microsoft initially claimed, these layoffs at Activision would have by no means occurred.

It’s price noting that the job cuts at Activision Blizzard spanned a number of groups, together with Blizzard’s esports divisions and subsidiary studio Toys for Bob. Also affected have been staff related to Blizzard’s unreleased survival recreation, codenamed Odyssey. Microsoft defended its actions and claimed that the layoffs have been a part of an “execution plan” to scale back “areas of overlap” between Microsoft and Activision.

The Ninth Circuit Court of Appeals is presently deliberating on the FTC’s enchantment, and issues might take an fascinating flip if it guidelines in favor of the FTC.