Tag: microsoft
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FTC accuses Microsoft of misrepresenting its Activision Blizzard plans after layoffs
One week after Microsoft laid off nearly 2,000 employees in its gaming division, the Federal Trade Commission is accusing Microsoft of contradicting its pledge to allow Activision Blizzard to operate independently post-acquisition. The FTC filed a complaint in a federal appeals court on Wednesday, arguing that last week’s downsizing, which affected employees of Activision Blizzard, “contradicts Microsoft’s representations in this proceeding.” The FTC is asking for a temporary pause of Microsoft’s acquisition of Activision Blizzard as it further investigates potential antitrust issues.
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.”
Though the UK’s Competition and Markets Authority approved Microsoft’s $69 billion acquisition of Activision Blizzard in October, the FTC hasn’t seen satisfaction regarding its own antitrust concerns. The FTC is still challenging the acquisition, which means there’s a possibility that Microsoft will be forced to divest all or part of Activision Blizzard.
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.
Microsoft’s layoffs join an avalanche of mass firings in the video game industry, specifically in the past few months. An estimated 10,500 people in video games lost their jobs in 2023 — and already in 2024, 6,000 workers have been laid off.
This article originally appeared on Engadget at https://www.engadget.com/ftc-accuses-microsoft-of-misrepresenting-its-activision-blizzard-plans-after-layoffs-215502314.html?src=rss
FTC hits Microsoft with federal complaint over game division layoffs
Microsoft brings new design-focused features to Copilot
Copilot, Microsoft’s family of AI-powered chatbots and assistants, is getting a few new upgrades timed with a flashy Super Bowl LVIII ad campaign. In a post on the official Microsoft blog, Yusuf Mehdi, Microsoft’s chief marketing officer, outlined what users can expect. “Today marks exactly one year since our entry into AI-powered experiences for people […]
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In a YouTube video, security researcher Stacksmashing demonstrated that hackers can extract the BitLocker encryption key from Windows PCs in just 43 seconds using a $4 Raspberry Pi Pico. According to the researcher, targeted attacks can bypass BitLocker’s encryption by directly accessing the hardware and extracting the encryption keys stored…
Microsoft BitLocker encryption cracked in just 43 seconds with a $4 Raspberry Pi Pico
In a YouTube video, security researcher Stacksmashing demonstrated that hackers can extract the BitLocker encryption key from Windows PCs in just 43 seconds using a $4 Raspberry Pi Pico. According to the researcher, targeted attacks can bypass BitLocker’s encryption by directly accessing the hardware and extracting the encryption keys stored…