US government went after Activision over stingy Overwatch salaries:
Overwatch
esports leagues, was designed to operate like the salary caps found in the NFL and NBA. The government says this specific deal, however, “had the purpose and effect of limiting competition between the teams in each league for esports players and suppressed esports players’ wages”,From the inception of each league, Activision and the teams agreed to impose rules that had the purpose and effect of substantially lessening competition for players by suppressing player compensation.
Teams recognized that their spending on player compensation would have been higher absent the Competitive Balance Tax. The Tax minimized the risk that one team would substantially outbid another for a player. The Tax not only harmed the highest-paid players, but also depressed wages for all players on a team. For example, if a team wanted to pay a large salary to one player, the team would have to pay less to the other players on the team to avoid the Tax.
The government say that an investigation into the Competitive Balance Tax has been going on for years, and that in 2021—having been warned it was potentially illegal—Activision “issued memoranda to all teams in the Overwatch and Call of Duty Leagues announcing that it would no longer implement or enforce a Competitive Balance Tax in either league”.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Overwatch 2's Hot New Support Hero Lifeweaver Leaks, Fans Already ObsessedBlizzard promises that more information on the pansexual king is coming this week
Read more »
Mexico regains ancient ‘Earth monster’ statue from US | The Malaysian InsightThis is part of the government’s effort to rescue historical heritage taken from the country.
Read more »
Ab Rauf to appoint 2 Pakatan excos, says report | The Malaysian InsightMalacca chief minister set to drop Umno reps in reshuffle and nod to unity government.
Read more »
Montenegrins head to polls in presidential runoffThe election follows months of gridlock after the government collapsed in August.
Read more »
Venezuela corruption probe nets 42 officials | The Malaysian InsightCrackdown continues at state oil company and other related government bodies.
Read more »