Dot Esports reports that the Overwatch League is under investigation by the U.S. Department of Justice's Antitrust Division over its soft salary cap policy.

"According to league officials, in 2020, the soft salary cap threshold equaled $1.6 million. If a team exceeds that amount, it must pay the league a luxury tax on the excess as well as the player's annual salary.

This luxury tax could be a violation of antitrust laws because it discourages other organizations from offering competitive annual salaries. Although this policy has not been publicly acknowledged by Activision Blizzard, it was first reported by Dexerto in 2019, in a memo referring to a "competitive balance tax" and a "(soft) salary" by Susie Kim, then general manager of London Spitfire cap" by Susie Kim, then general manager of London Spitfire, and a now-deleted tweet referring to a "(soft) salary cap.

When reached for comment, an Activision Blizzard spokesperson told PC Gamer, "We have received an inquiry from the Department of Justice and are cooperating accordingly. We are committed to providing fans with spectacular entertainment and supporting the players and teams that produce the most competitive and fun esports leagues in the world."

Many sports leagues, such as the NFL and NBA, have "statutory exemptions" because the Sherman Act, a key piece of antitrust legislation enacted in 1890, does not apply to union-employer agreements. However, players in the Overwatch League are not currently unionized.