department of justice

Report: Activision Blizzard ending Overwatch, Call of Duty League’s competitive balance tax, salary cap

Activision Blizzard is eliminating the competitive balance tax and soft salary cap for its Overwatch League and Call of Duty League, as first reported by the Sports Business Journal and confirmed by Dot Esports. The decision comes after the opening of a U.S. Department of Justice antitrust division investigation into the Overwatch League’s practices. Dot Esports broke news of that probe in July, with an Activision Blizzard spokesperson confirming that the DOJ had opened an inquiry and that the game developer was complying.  “We have received an inquiry from the

US Justice Department Reportedly Investigating Overwatch League

OverwatchThe Justice Department is investigating the salary cap in the Overwatch League. / Photo courtesy of BlizzardThe United States Department of Justice's antitrust division is investigating the Overwatch League over a soft salary cap policy that may violate the 1890 Sherman Antitrust Act, reports Dot Esports.The inquiry centers around the lack of a players' union in the Overwatch League. A union would allow the league to apply for "non-statutory labor exemption," a status granted to the NFL, NBA, and other sports leagues with unions, making the use of a salary

U.S. Department of Justice opens antitrust inquiry into Overwatch League’s soft salary cap, ‘competitive balance tax’

The U.S. Department of Justice antitrust division is probing the Overwatch League over its soft salary cap policy that discourages teams from excess spending, sources familiar with that inquiry told Dot Esports. The probe is being headed by DOJ trial attorney Kathleen Simpson Kiernan, who works for the Civil Conduct Task Force subdivision of the antitrust division in Washington. Kiernan and other DOJ attorneys have contacted and interviewed several former Overwatch League employees, according to sources. The nature of Kiernan’s investigation is not criminal, sources said. DOJ officials did not