Microsoft’s recent layoffs contradict what the company promised of its merger, the FTC says.

lemmyseizethemeans , 4 months ago

Sure we will honor the terms set in the acquisition filing

https://lemmygrad.ml/pictrs/image/eb3ad051-d510-46f0-94ee-2f8d5a0943cb.gif

Treczoks , 4 months ago

As if they would care. What is the FTC going to do about it? Most likely do nothing, or issue a stern warning.

bitcrafter , 4 months ago

This news story is literally about the FTC actively suing for injunctive relief; the “complaint” in question is actually a formal legal letter addressed to the U.S. Ninth Circuit Court.

Edit: fixed typo

Treczoks , 4 months ago

Yes, of course they have complained to the courts. That's not the point. This simply will go nowhere, or do you expect that the court will somehow separate Activision out of Microsofts hands again to fix this? Or punish the managers at Microsoft and make them withdraw the execution plan to remove redundant jobs?

At the end of it, Microsoft will eventually pay a small, symbolic sum which they consider "cost of conducting business". Nothing more.

GrundlButter , 4 months ago

As pessimistic as it sounds, I think you’re right. There’s likely some back pay they will have to give to the workforce they fired, which is a pittance compared to what they stand to earn as they milk their purchase dry.

bitcrafter , 4 months ago

If the appellate court is unhappy with the lower court’s ruling, then there is no reason for it not to reverse it and tell Microsoft to stop the process of merging with Activision until the proceedings have completed. Admittedly this outcome might be inconvenient for Microsoft and Activison, but it is not the job of the court to care about this.

bitcrafter , 4 months ago

Yes, of course they have complained to the courts. That’s not the point.

That is moving the goalposts. In your other comment, you said, “What is the FTC going to do about it? Most likely do nothing, or issue a stern warning.” I have demonstrated that they are doing neither of these things but instead are going through the courts to get injunctive relief.

This simply will go nowhere, or do you expect that the court will somehow separate Activision out of Microsofts hands again to fix this?

If the appellate court decides that the lower court erred in its reasoning, then there is no reason why it could not issue such an order. It is not like this would be the first time that the government broke up a company.

Or punish the managers at Microsoft and make them withdraw the execution plan to remove redundant jobs?

There is no reason why the court could not issue an injunction preventing it from executing this plan until the proceeding concludes.

At the end of it, Microsoft will eventually pay a small, symbolic sum which they consider “cost of conducting business”. Nothing more.

If the FTC considered this to be a sufficient remedy then they probably would have settled with Microsoft by now rather than taking this to the courts.