Government says leading e-sports operator is violating
antitrust laws by capping earnings.
The Biden administration continues its campaign against wage
suppression as a source of harm to workers, competitive markets,
and the economy. In its latest move, the Department of Justice is
supporting players in professional e-sports leagues with a suit to
stop Overwatch and Call of Duty developer,
Activision Blizzard, Inc., from capping player compensation. Unlike
salary restrictions in traditional sports leagues, those
implemented by Activision were not produced through collective
bargaining and, therefore, are not exempt from antitrust
scrutiny.
Complaint and Consent Decree
The DOJ filed suit to challenge Activision's wage
restrictions on April 3rd, alleging Activision and
independently-owned teams in two e-sports leagues agreed to
implement certain wage restrictions, including a "Competitive
Balance Tax." The tax penalizes teams in the
Overwatch and Call of Duty le
