Activision Proposes Settlement in DOJ Lawsuit Over Esports Pay
An Activision ‘Overwatch’ league match in San Antonio.
Photo:
Sergio Flores/Bloomberg News
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.
The proposed settlement will undergo a period for public comment and be reviewed by the court before it is finalized.
The Justice Department’s antitrust division on Monday said it filed a proposed consent decree that, if approved, would prohibit Activision from imposing any rule that would limit player compensation in any of its professional esports leagues or that would tax, fine or otherwise penalize any team for exceeding a certain amount of compensation for its players, among other measures.
“Professional esports players—like all workers—deserve the benefits of competition for their services. Activision’s conduct prevented that from happening,” said Assistant Attorney General
Jonathan Kanter
of the department’s antitrust division.
Activision said, “We have always believed, and still believe, that the Competitive Balance Tax was lawful, and it did not have an adverse impact on player salaries. The tax was never levied, and the leagues voluntarily dropped it from our rules in 2021.”
The complaint was filed Monday in the U.S. District Court for the District of Columbia.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 4, 2023, print edition as ‘U.S. Sues Activision Over Esports Leagues.’
An Activision ‘Overwatch’ league match in San Antonio.
Photo:
Sergio Flores/Bloomberg News
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.
The proposed settlement will undergo a period for public comment and be reviewed by the court before it is finalized.
The Justice Department’s antitrust division on Monday said it filed a proposed consent decree that, if approved, would prohibit Activision from imposing any rule that would limit player compensation in any of its professional esports leagues or that would tax, fine or otherwise penalize any team for exceeding a certain amount of compensation for its players, among other measures.
“Professional esports players—like all workers—deserve the benefits of competition for their services. Activision’s conduct prevented that from happening,” said Assistant Attorney General
Jonathan Kanter
of the department’s antitrust division.
Activision said, “We have always believed, and still believe, that the Competitive Balance Tax was lawful, and it did not have an adverse impact on player salaries. The tax was never levied, and the leagues voluntarily dropped it from our rules in 2021.”
The complaint was filed Monday in the U.S. District Court for the District of Columbia.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the April 4, 2023, print edition as ‘U.S. Sues Activision Over Esports Leagues.’
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