Categories: News

Activision Blizzard Sued Over eSports Salaries

Activision Blizzard has been sued by the US government over the salaries of their esports players citing a violation of antitrust laws.

Department of Justice Sues Activision Blizzard

In a report from it has been revealed that the US Department of Justice has filed a civil suit against Activision Blizzard and has accused them of violating the Sherman Antitrust Act. The Government says that the company has rules for its Overwatch and Call of Duty League that keeps players’ salaries down, the specific rule was the “Competitive Balance Tax”. This tax is intended to penalize teams if they spent more on players’ salaries than the amount that had been decided by Activision Blizzard.

In the lawsuit, which you can read here, the US Government claimed

The Tax, which effectively operated as a salary cap, penalized teams for paying esports players above a certain threshold and limited player compensation in these leagues. This conduct had the purpose and effect of limiting competition between the teams in each league for esports players and suppressed esports players’ wages.
This conduct violates Section 1 of the Sherman Act, 15 U.S.C. § 1, and should be enjoined.

Activision Blizzard Statement

Activision Blizzard denied these charges and when approached by Brendan Sinclair of, Activision Blizzard claimed:

“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.”

This all seems a bit unfair for professional esports players and I wouldn’t be surprised if Activision Blizzard were mugging their players off, especially considering the publisher’s recent issues. Within the same day, April 3rd, the company agreed to a settlement to the case.

What do you think of this? Let us know in the comments.

Jakob Aylesbury

Disqus Comments Loading...

Recent Posts

Unity Shares an Open Letter To The Community Following Backlash Over Runtime Fees

Unity recently came under fire surrounding the announcement of new runtime fee's going into 2024…

9 hours ago

be quiet! 360mm Pure Loop Intel/AMD CPU Liquid Cooler

Product Overview Pure Loop 360mm is the new impressively high-performing and silent All-in-One water cooling…

10 hours ago

be quiet! Pure Power 12 M 850 Watt PSU/Power Supply

Product Overview Pure Power 12 M 850W is an ATX 3.0 PSU and comes with…

10 hours ago

be quiet! Black Pure Base 500DX Windowed ARGB PC Gaming Case

Product Overview Upgrade your gaming setup with the Pure Base 500DX case from be quiet!…

10 hours ago

Paradox Interactive Announces New Strategy Game to Rival Civilization

Paradox Interactive the company behind some of the most popular strategy games like Hearts of…

10 hours ago

Kingston NV2 1TB M.2 NVMe PCIe 4.0 SSD/Solid State Drive

Product Overview Kingston’s NV2 PCIe 4.0 NVMe SSD is a substantial next-gen storage solution powered…

10 hours ago