Activision Blizzard Settles Justice Department Lawsuit, Agrees Not to Limit eSport Player Salaries
Activision Blizzard has settled a lawsuit with the U.S. Department of Justice over allegations that publishers imposed caps on esports player salaries paid by the Overwatch and Call of Duty leagues.
The department Complaint As its name suggests, the tax is designed to limit competition between teams by stifling the wages of esports players, and will not exceed a certain threshold set by Activision Blizzard. The team was fined for paying the player. The department said it violated the Sherman Act.
DOJ added that Activision Blizzard has lifted its salary cap rule in October 2021 following a competitive balance tax investigation.
“The tax was never collected and the league voluntarily removed it from the rules in 2021,” Activision said in a statement (per Reuters). “We have always believed that competitive balance taxes are legal and not harmful to players.”
