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Activision Blizzard has settled a lawsuit lodged by the US Justice Department regarding a controversial tax planned for the wages of esports players.
Overwatch and Call of Duty esports teams were set to be given an effective salary cap, dubbed the Competitive Balance Tax, which was designed to kick in after teams earned over a certain threshold.
This tax "effectively operated as a salary cap, penalised teams for paying esports players above a certain threshold and limited player compensation in these leagues", the US Justice Department alleged.
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