Video game developer and publisher Activision recently reached an agreement with the U.S. Department of Justice to settle charges of anticompetitive practices. The company stands accused of working with other developers and publishers to limit what competitive esports players earn in annual salary and prize money.
The DOJ’s antitrust division launched an investigation into Activision and other gaming companies shortly after reports of anticompetitive practices were made public in 2019. The probe found that Activision’s agreements with other major publishers, including Take-Two Interactive, Electronic Arts, and Capcom, violated antitrust laws. According to the DOJ, the companies had entered into agreements that would allegedly reduce the competition for talented esports players by “hiring and poaching each other’s players” and “preventing players from seeking and obtaining potentially superior offers from competitors.”
Under the terms of the settlement, Activision will pay an $8.2 million criminal fine and enter into a deferred prosecution agreement with the DOJ. The company has also agreed to take measures to ensure compliance with antitrust laws and to report any violations of the agreement to the DOJ.
According to The Esports Observer, the settlement could have far-reaching implications in the esports industry. With many esports tournaments and leagues relying on large prize pools, this settlement may pave the way for more lucrative salary and prize opportunities for players. It could also open the esports industry up to more competition, allowing new players to enter the market and potentially boosting viewership and viewership revenues.
In the wake of the settlement, Activision has released a statement expressing its commitment to ensuring a fair, competitive environment in the esports industry. “At Activision, we want the best players to be successful, and by entering this agreement, we are proud to take an important step in that direction,” said Activision’s chief executive, Bobby Kotick.
The settlement between Activision and the DOJ comes at an important juncture for the industry. Esports is one of the fastest-growing segments of the video game industry, with both players and viewers watching in record numbers. This settlement could open the door for even more eSports players to earn a living in a competitive and vibrant ecosystem.