Activision settles esports wage cap lawsuit with Division of Justice

The US Division of Justice has filed a lawsuit over Activision Blizzard’s “Aggressive Steadiness Tax” within the Overwatch and Name of Responsibility leagues that it says “penalized groups for paying esports gamers above a sure threshold and restricted participant compensation in these leagues.” On the identical time, the DOJ additionally submitted a proposed settlement that, if authorised by the court docket, will finish the matter so long as Activision guarantees to not do it once more.

The lawsuit (opens in new tab) notes that each Overwatch and Name of Responsibility are massively profitable video games, and that their respective professional leagues “have generated tons of of tens of millions of {dollars} for Activision from franchise charges, sponsorship revenues, unique streaming offers with YouTube, and the Overwatch League’s tv broadcast cope with Disney (together with subsidiaries ESPN and ABC).” Like most different sports activities leagues, the Overwatch and Name of Responsibility leagues are made up of independently owned groups, who’re in fixed competitors to signal and retain the very best gamers.

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