Comment on The FTC isn’t too happy with Microsoft’s Activision Blizzard layoffs
blazeknave@lemmy.world 4 months ago
Eli5 please… in lieu of US trust busting, couldn’t literally any government entity like the EU, where msft etc Al do business, have stopped this acquisition? How did this happen in the first place?
EldritchFeminity@lemmy.blahaj.zone 4 months ago
As far as I understand the circumstances, because Microsoft and Activision-Blizzard are both US companies, they ultimately fall under US regulation except for any of their offices/holdings in other countries, where they have to abide by the local laws. The reason the FTC is upset now is that Microsoft had said that Activision-Blizzard was largely going to be its own independent company under the Microsoft brand, so these layoffs go against those promises - especially with the wording about removing “overlap” between the companies, which points to them firing people at Activision-Blizzard who had the same job as people already working at Microsoft. The only reason that they’d do that is if they’re not actually letting Activision-Blizzard run on their own and are going to be merging the company into Microsoft more than they had said they would.
I do remember something about the UK signing off on the merger, so I assume that there are some countries that did their own “due diligence” and approved the acquisition, but a majority of these layoffs are in California by the sounds of it, so all any of them could really do at this point is hold Microsoft liable if they don’t follow local labor laws about severances and the like. I assume that they felt the same way as the FTC, in that the promise of Activision-Blizzard running on their own meant that there was little concern about monopolizing the industry.
barsoap@lemm.ee 4 months ago
Any country that a company wants to do business in ultimately has a say on things like mergers. But every country of course has specific things that it cares about and US employees are not on the EU’s list, it’s all about the software market.
RedAggroBest@lemmy.world 4 months ago
I really don’t get this argument regardless of which way things “should be”.
Even and independent Activision-Blizzard under Microsoft would have overlap with HR or something. I can’t imagine leaving them “independent” wasn’t going to entail some trimming of fat.
EldritchFeminity@lemmy.blahaj.zone 4 months ago
According to the article, Microsoft is laying off 1,900 people from its games division, roughly about 8% of the workforce in their game studios. Of those 1,900, at least 899 of them are confirmed to be from Activision-Blizzard’s offices in California, potentially more.
That’s a lot more like a full merger than the “vertical acquisition” that Microsoft claimed was going to be the case. Obviously, there was going to be some redundancy regardless of how much they were going to be left to self operate, but that’s a lot of jobs cut, and we don’t know what kinds of jobs are even being cut.
IMO, the merger was a lose-lose situation no matter which way you slice it, either Microsoft further reduces competition with the buyout, or Bobby is left in charge, but the FTC is upset because Microsoft said that Acitivision-Blizzard was basically going to be running as they had been before the buyout.