Trio of Professional Gamers Sue Activision for alleged Monopoly on "Call of Duty" Leagues and Tournaments
A group of professional gamers has filed a lawsuit against video game developer Activision, accusing the company of holding a "lucrative and once-vibrant market" for "Call of Duty" leagues and tournaments with an "unlawful 100% monopoly." The lawsuit, which was filed in the central district of California, western division court, outlines a series of anticompetitive actions allegedly taken by Activision.
The plaintiffs, Hector Rodriguez, Seth Abner, and Hecz LLC, claim that Activision has used its monopoly power to prevent competitors from entering the market, while also coercing professional "Call of Duty" players and team owners into agreeing to financially burdensome terms. According to the lawsuit, these terms allegedly benefit Activision at the expense of team owners and players, without any valid pro-competitive justification.
The legal action further alleges that individuals and entities who were unable or unwilling to meet Activision's terms were excluded from the market. Rodriguez and Abner reportedly faced additional economic burdens in order to comply with what they consider to be Activision's anticompetitive terms.
Activision has dismissed the lawsuit as "meritless litigation" and has pledged to defend against the claims, asserting that the allegations have no factual or legal basis. The company expressed disappointment over the lawsuit, claiming that it disrupts the investment and effort put into the "Call of Duty" league by team owners, players, fans, and partners.
The lawsuit also highlights an allegation that Activision hindered Rodriguez's ability to monetize the OpTic brand and coerced him into relinquishing a significant share of ownership in his company, Optic IP, LLC (Optic Gaming). Activision counters this claim by stating that Rodriguez sold his CDL league OpTic Texas (formerly Dallas Empire) two years before the formation of the league, which they argue devalued it.
In seeking resolution, the plaintiffs are seeking a jury trial to present their case against Activision.
Analyst comment
Negative news. The market may experience uncertainty as the lawsuit against Activision raises concerns about the company’s monopolistic practices and alleged anticompetitive actions. If the plaintiffs win the trial, it could lead to potential changes in the market structure and terms for professional gamers and team owners.
