Activision Stock (NASDAQ:ATVI)
Activision Blizzard (NASDAQ:ATVI) has settled with the United States Department of Justice (DOJ) over a complaint about purported wage limitations for esports teams. The action was brought about by the DOJ.
According to a news statement by the Department of Justice (DOJ), a lawsuit was initiated against Activision. Subsequently, a proposed consent decree was initiated.
According to a copy of the action that was filed and resolved on Monday, subject to the court’s approval, the case centered upon an alleged unlawful salary limit placed on teams competing in gaming competitions.
Professional esports players, like other employees, deserve the advantages of competition for their services. Video games and esports are among the most popular and fastest-growing entertainment today. The actions of Activision prevented that from taking place, according to Assistant Attorney General Jonathan Kanter of the Antitrust Division of the Justice Department. With today’s complaint, the Antitrust Division is still dedicated to protecting employees from anticompetitive practices in all fields.
According to a statement released by the Department of Justice (DOJ), the proposed consent decree would, if authorized by the court, prevent Activision from establishing any regulation that would, directly or indirectly, restrict player pay in any of Activision’s professional esports leagues, or that would tax, punish, or otherwise penalize any team for exceeding a specified level of compensation for its players. This provision would apply to any of Activision’s professional esports leagues.
When the Federal Trade Commission (FTC) filed a lawsuit in December to stop Microsoft from acquiring Activision for $69 billion, Microsoft and Activision have now reached a settlement in the case that they brought against one other.
Featured Image: Megapixl © Selagin
Author Shariq Khan 
