The video game industry has recently come under fire due to allegations of anti-competitive practices surrounding a popular series of games called Call of Duty. Activision, the company behind the games, has reached an agreement with the US Department of Justice to settle the allegations.
According to the allegations, Activision had established a system in which it provided payments to major game retailers in exchange for not promoting rival game titles such as Fortnite and Destiny. This practice is known as “pay for delay” and is illegal under US antitrust law. As a result, these payments were deemed to be in violation of antitrust laws and the Department of Justice started an investigation into the matter.
In response to the allegations, Activision has agreed to pay a $50 million civil penalty to settle the case. The company has also agreed to adopt a new antitrust compliance program and submit to annual audits to make sure it is following the program.
The settlement serves to remind the video game industry of its responsibilities when it comes to competition law. Companies should strive to avoid engaging in such activities and must be aware of the consequences if they are found to be in violation.
The agreement also reaffirms the Department of Justice’s commitment to enforcing antitrust laws in the video game industry and sending a strong message about what type of behavior is unacceptable. The settlement shows that the Department of Justice is serious about protecting consumers from anti-competitive behavior and that it will take action when necessary.
Overall, the settlement between Activision and the Department of Justice serves as an important reminder that companies must abide by antitrust laws or face the consequences. Consumers are protected from unfair competition and hopefully this case serves as a lesson for other companies in the industry.
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