US Justice Department settles with Activision over esports salary limits

The US Justice Department agreed to a settlement with Activision Blizzard to resolve the department's lawsuit filed on Monday over salary limits in professional esports leagues. The department said in its lawsuit filed in US District Court in Washington that Activision Blizzard Inc, which owns leagues built around its "Overwatch" and "Call of Duty" video games, and the independently owned teams imposed a tax that "effectively operated as a salary cap, penalized teams for paying esports players above a certain threshold and limited player compensation in these leagues."

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