US Justice Department Takes Action Against Activision Blizzard for Esports Salary Suppression

The US Department of Justice has filed a civil suit against Activision Blizzard, accusing the publisher of violating antitrust laws with Overwatch League and Call of Duty League rules that kept player salaries down. The government is taking issue with the esports leagues' Competitive Balance Tax, which it says was intended to penalize teams if they spent more on player salaries than an amount decided upon by Activision Blizzard. Activision Blizzard denies the charges and says the Competitive Balance Tax was lawful and did not have an adverse impact on player salaries.