Microsoft Fires Back at FTC's Allegations Amidst Legal Battle for Activision Blizzard Acquisition

In the ongoing legal saga surrounding Microsoft's bid to acquire gaming giant Activision Blizzard, the tech titan's legal team has launched a robust response to allegations leveled by the Federal Trade Commission (FTC) just a day ago.

The FTC, seeking to overturn a federal court's decision denying a preliminary injunction against the acquisition, penned a scathing letter to the 9th Circuit Court of Appeals, accusing Microsoft of deceptive tactics regarding its commitment to potentially divest Activision Blizzard if necessary.

At the heart of the matter is a recent wave of layoffs, affecting around 1,900 employees within Microsoft's gaming division, including many from the recently acquired Activision Blizzard. The FTC contends that these layoffs contradict Microsoft's earlier claims of being prepared to spin off Activision Blizzard if mandated. The company vehemently rebuked the FTC's assertions, arguing that the regulator's claims are "incomplete and misleading." Microsoft's legal team maintains that Activision Blizzard had already been planning significant job cuts independently, aligning with broader industry trends.

Furthermore, Microsoft emphasized its commitment to honoring its representations to the court, asserting that it continues to operate Activision Blizzard with the possibility of divestment in mind, despite recent layoffs.

Meanwhile, the legal wrangling extends beyond the FTC's accusations. Law firms behind the "Gamers' lawsuit" have sought a temporary restraining order against further Microsoft layoffs, with a status conference scheduled before Judge Jacqueline Scott Corley for March 14.

Despite the legal turbulence, Microsoft presses forward with its vision for Xbox's future, teasing an upcoming event next week. Amidst industry-wide layoffs affecting major players like Sony, Bungie, and Epic Games, Microsoft's acquisition of Activision Blizzard remains a pivotal point in the ever-evolving landscape of gaming. As the legal drama unfolds, the industry awaits the next twist in this high-stakes game of corporate maneuvering and regulatory scrutiny.