Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 4 (Xinhua)-- the US Department of Justice has agreed to reach a settlement with Activision Blizzard to resolve the department's lawsuit over wage restrictions on professional e-sports leagues, Reuters reported.

In a lawsuit filed in the United States District Court in Washington, the department said Activision Blizzard imposed rules that limited competition and pay for players in the professional e-sports leagues of Watch Pioneer and call of Duty.

The lawsuit accuses Activision Blizzard and its independent teams in e-sports 's alliance of imposing a "competitive balance tax" to punish teams whose players' salaries exceed the threshold set by the league.

Today, the US Department of Justice has agreed to reach a settlement with Activision Blizzard. Activision Blizzard responded as follows:

Activision Blizzard e-sports is committed to becoming a leader in the e-sports industry and creating opportunities for players to receive fair pay and benefits. When we launch the "Watch Vanguard" and "call of Duty" league, we want to create viable career opportunities for players who require minimum wage and mandatory benefits as part of the contract.

As an alliance, we also want our products to be competitive, so we have carefully designed and implemented a competitive balance tax.

We have always believed, and still believe, that the competitive balance tax is legal and will not adversely affect the salaries of the contestants. The tax was never levied and the alliance voluntarily removed it from the rules in 2021.

We remain committed to building an ecosystem of players with fair pay and health care, and continue to have the least restrictive player mobility compensation system in all major sports leagues.

Under a settlement agreement that must still be approved by a federal judge, Activision Blizzard agreed not to impose any caps or restrictions on the salaries of e-sports players or teams, the Justice Department said.

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