Activision Blizzard, the renowned video game maker, has agreed to settle allegations over its mishandling of workplace complaints and violations of whistleblower protection rules by paying a hefty sum of $35 million (approximately Rs. 290 crore), as stated by US financial regulators on Friday.
According to the Securities and Exchange Commission (SEC), Activision Blizzard was well aware of the significant risk of employee retention issues in its business but failed to establish adequate measures to address workplace misconduct complaints between 2018 and 2021. Additionally, the company violated whistleblower protection rules by compelling employees to report if they were contacted by the SEC for information, spanning from 2016 to 2021.
Jason Burt, the head of the SEC’s Denver office, highlighted that Activision Blizzard’s lack of essential controls to gather and assess employee complaints about workplace misconduct deprived them of the capability to identify potentially grave issues that should have been disclosed to investors.
In response, representatives of the Santa Monica-based video game developer and publishing company expressed their satisfaction in resolving the matter amicably and shared their commitment to enhancing workplace reporting and contractual language.
It is worth noting that Microsoft, the creator of Xbox, recently made a massive bid of $69 billion (nearly Rs. 5,66,500 crore) to acquire Activision Blizzard. However, the Federal Trade Commission intervened and requested a judge to block the transaction, while European Union authorities are also scrutinizing the deal. The FTC, being responsible for enforcing antitrust law, argued that the acquisition would grant Microsoft’s Xbox exclusive access to Activision games, consequently leaving Nintendo consoles and Sony’s PlayStation at a disadvantage.
The final decision on the deal lies with Michael Chappell, the FTC administrative law judge, after conducting hearings scheduled for August 2023.
Please note that the information provided above is sourced from Thomson Reuters 2023.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
