US Government Settles Lawsuit with Activision Over Esports Salary Suppression
The US Department of Justice has accused Activision Blizzard of underpaying esports players by imposing a "Competitive Balance Tax" that suppressed player compensation and limited competition between teams. The tax was signed off by both Activision and each team in their Call of Duty and Overwatch esports leagues. Activision has settled with the government, saying the tax was never levied and the leagues voluntarily dropped it from their rules in 2021. The company believes the tax was lawful and did not adversely impact player salaries.