HomeNews
Activision Blizzard settles lawsuit with US government over esport wage suppressionAnother day, another ActiBlizz lawsuit
Another day, another ActiBlizz lawsuit
Image credit:Activision Blizzard
Image credit:Activision Blizzard
Yesterday, the US Department Of Justicefiled a civil suitagainst Activision Blizzard, accusing the publisher’s Competitive Balance Tax of capping esports players’ wages and penalisingOverwatchandCall Of Dutyleague teams if they exceeded the salary cap.
The 14 Biggest Games Coming To PC In 2023Watch on YouTube
The 14 Biggest Games Coming To PC In 2023
Traditional sports leagues have similar rules in place; they also have player unions who negotiate these pay caps. The DOJ draws the line here because “professional esports players - like all workers - deserve the benefits of competition for their services.”
Alongside the lawsuit, the DOJ proposed a settlement for the case which would forbid the publisher from imposing similar rules - ones that capped player wages or penalised teams based on pay - in the future.
In a statement togamesindustry.biz, ActiBlizzard say their tax was lawful, but funnily enough, they’re deciding to settle the case and not defend it: “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 company mentioned that the tax was never actually levied and was dropped from their rules in 2021 (when theDOJ first began its investigation). ActiBlizzard go on to say they “continue to have the least restrictive player mobility compensation system across all of the major sports leagues.”
Activision Blizzard are currently the subject of a number oflegal actions,labour disputesand allegations ofworkplace harassment. Rock Paper Shotgun will continue to write about these issues, as well as covering Activision Blizzard games as part of our commitment to cover subjects of interest to our readers. The latest news can always be found under ourActivision Blizzardtag.
