The U.S. Justice Department on Monday said it filed an antitrust lawsuit against Activision Blizzard Inc. alleging that the company imposed rules that limited competition for players in two of its videogame franchises’ professional esports league and suppressed wages for players in those leagues.
The department said its complaint alleges that in two of the esports leagues owned by the videogame company, Activision 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.
Justice Department Sues Activision Over Esports Leagues
