Activision settles with Justice Department over esports antitrust claims
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Activision Blizzard (NASDAQ:ATVI) agreed to settle with the U.S. Justice Department over a lawsuit related to alleged salary caps for esports teams.
The lawsuit was filed against Activision (ATVI) and a proposed consent decree was filed subsequently, according to a press release from the DOJ.
The lawsuit revolved around alleged illegal salary cap for teams in the videogame leagues, according to a copy of the suit filed and settled, subject to court approval, on Monday.
âVideo games and esports are among the most popular and fastest growing forms of entertainment in the world today, and professional esports playersâlike all workersâdeserve the benefits of competition for their services. Activisionâs conduct prevented that from happening,â said Assistant Attorney General Jonathan Kanter of the Justice Departmentâs Antitrust Division. âTodayâs lawsuit makes clear that the Antitrust Division remains committed to protecting workers across all types of industries from anticompetitive conduct.â
If approved by the court, the proposed consent decree would prohibit Activision (ATVI) from imposing any rule that would, directly or indirectly, limit player compensation in any of Activisionâs professional esports leagues, or that would tax, fine, or otherwise penalize any team for exceeding a certain amount of compensation for its players, the DOJ said in its statement.
The lawsuit and settlement come after the Federal Trade Commission sued to block Microsoft (MSFT)'s $69 billion acquisition of Activision (ATVI) in December.