The U.S. Justice Department is reviewing a proposed settlement to its antitrust lawsuit against Activision Blizzard Inc. after accusing the company of imposing rules that limited competition and suppressed wages for players in two of its videogame franchises’ professional esports leagues.
The department alleged that in two of the esports leagues owned Activision, the company and the independently owned teams in each league implemented a so-called Competitive Balance Tax. The tax was structured to penalize teams in the “Overwatch” and “Call of Duty” leagues if a team’s player compensation exceeded a threshold set by Activision, the complaint alleges.
Activision Proposes Settlement in DOJ Lawsuit Over Esports Pay
