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The US Department Of Justice Files Antitrust Suit Against Activision Blizzard

By  |  April 3, 2023

On Monday, Reuters reported that the US Justice Department had filed an antitrust complaint against Activision Blizzard.

The lawsuit, filed in the US District Court for the District of Columbia, alleges that a tax levied against teams that paid their players more than the Activision-set cap illegally kept down wages for professional players of the video games Call of Duty and Overwatch.

Read more: US Watchdogs Seek More Data From Activision, Microsoft Deal

According to a court filing by the department, Activision Blizzard and independently owned teams enforced a tax that operated as a salary cap and penalized teams for paying esports players above a certain threshold. This tax also limited player compensation in leagues centered around Overwatch and Call of Duty games.

The Federal Trade Commission, which works with the Justice Department to enforce antitrust law, moved to block Microsoft’s $69 billion bid to buy “Call of Duty” maker Activision Blizzard in December.