The actor has already apologized for his actions, admitting that his behavior was “unacceptable and inexcusable” and left him “embarrassed”.
But the Academy would penalize Smith for his outburst.
In a statement on Monday, the 9,900-member Academy of Motion Picture Arts and Sciences said it “condemns the actions of Mr. Smith at last night’s show.”
“We have officially started a formal review around the incident and will explore further action and consequences in accordance with our Bylaws, Standards of Conduct and California law,” the academy added.
The group’s standards of conduct policy states that it is “categorically opposed to any form of abuse, harassment or discrimination’ and expects members to uphold the values ‘of respect for human dignity, inclusion, and a supportive environment that fosters creativity.”
Violations may result in suspension or expulsion from the group, revocation of Oscars, or loss of eligibility for future awards, according to the policy.
Marshall Herskovitz, president emeritus of the Producers Guild of America, also tweeted: “I call upon the Academy, of which I am a member, to take disciplinary action against Will Smith. He disgraced our entire community tonight.”