On Monday, the U.S. Justice Department filed a complaint in the district of Columbia accusing embattled publisher Activision Blizzard of suppressing the wages and compensations of esports players, a matter which has reportedly already been settled.
The Justice Department alleged that Activision Blizzard limited competition for professional players of Call of Duty and Overwatch in esports leagues by implementing a "competitive balance tax". This would penalise a team if player compensations were to exceed a specific threshold (set by Activision Blizzard), effectively functioning as a salary cap.
In a statement, a spokesperson for Activision Blizzard said, in part, that: "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."
Activision Blizzard has re-committed to "being a leader in the esports industry and creating opportunities for players to earn fair pay and benefits", in addition to not implementing the competitive balance tax or any other kind of caps or limits on the salaries of esports players in the future.
In other Activision Blizzard news, the ongoing acquisition story appears to be coming to some kind of end, with UK regulators no longer concerned it will have a significant impact on console competition.
What do you think of this flash-in-the-pan legal distraction? Hire the best lawyers money can buy before descending into the comments section below.
[source justice.gov, via reuters.com, videogameschronicle.com]
Well you, this wouldn't have been a problem if Jim Ryan wasn't being a little baby and just let MS buy Activision-Blizzard.
@Tasuki what's this have to do with Jim Ryan? This tax was implemented before the acquisition.
Wish I could live rent free like Jim does.
@Tasuki man, with your obsession with Jim Ryan you sound like a broken record.
@naruball it’s always Sonys fault… the weak performance of the series is not because of the lack of exciting games it’s Sonys fault and money all the time (while Ms has unlimited money otherwise)…
This has nothing to do with that and that acquisition is a blatant monopoly attempt, get ratioed.
@Tasuki Did you read the article or is this a useless rant.
The whole forum is dedicated to respond one garbage comment at the beginning
@Reeneman to be honest, with the acquisition of Bethesda, I expect MS to finally have some great exclusives. I don't like the way they try to compete, but it is what it is.
Seems to be a common thing with a certain minority mindset of people like @Tasuki that even something like,
A hobo farted across the street, which set off a chain reaction with a match, that ignited an oil spill, that lit a dumpster ablaze, that killed a rat and left it's babies fatherless.
And it's somehow Sony/Jim's fault. Everything that happens in the world is their fault these days. To certain people.
@GADG3Tx87 There's quite a few of them on PX, can't go an article without certain individuals mentioning playstation, xbox is getting a new UI update yet people are bashing playstation, xbox 360 games are in the charts and there's people bashing playstation. Xbox fans seem to have developed a deep hatred towards playstation and anyone associated with them.
@EhronLocke Couldn't agree more. Like Square Enix, they seem to have a management problem. I assume they tried to come up with some new IPs, they just weren't particularly good or the management didn't see potential in them, if the cancelled sci-fi game that the creator of God of War tried to make is anything to go by.
Bobby Kotick gonna Bobby Kotick!
@UltimateOtaku91 I don't have any hatred towards Playstation or anyone who likes Playstation, just Jim Ryan and his B.S.
@Tasuki That's fine and you're free to hate Jim Ryan but you don't need to mention it on articles that aren't related to him.
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