OpTic Gaming Members File Lawsuit Against Activision, Alleging Monopoly in Competitive Call of Duty
OpTic Gaming, a well-known name in the esports industry, is making headlines again. Two prominent members of the organization, Hector “H3CZ” Rodriguez and Seth “Scump” Abner, have filed a lawsuit against gaming giant Activision. According to Bloomberg Law, the lawsuit accuses Activision and the Call of Duty League (CDL) of creating a monopoly on competitive Call of Duty (CoD).
OpTic Gaming, which competes in the CDL, alleges that Activision's ownership of the Call of Duty franchise and its control over the CDL have effectively created the only platform for high-level competitive CoD players. Prior to the CDL, tournaments were organized by other companies such as Major League Gaming, Gamestop, and Checkmate Gaming, allowing players to compete at various levels.
The lawsuit, filed by OpTic Gaming founder H3CZ and retired professional CoD player Scump, claims that Activision's acquisition of Major League Gaming in 2016 resulted in a significant concentration of the professional Call of Duty market. To further solidify its monopoly, Activision refused to grant licenses to other organizers and operators of commercial Call of Duty competitions.
However, the allegations don't stop at monopoly accusations. Rodriguez also claims that Activision forced him to sell the majority of his company. The lawsuit states that in addition to a hefty $27.5 million entry fee to join the CDL, Activision demanded a 50% share of the team's revenue from ticket sales, sponsorships, and other streams. Those who refused to comply with these demands were allegedly excluded from the professional CoD market.
In 2020, after reacquiring OpTic Gaming, Rodriguez attempted to enter the CDL as the sole owner of a team. The lawsuit asserts that Activision rejected his application, forcing Rodriguez to seek partnerships with billionaire investors in 2021 to regain a foothold in the competitive Call of Duty scene. Unfortunately, these partnerships resulted in the investors obtaining a significant 92.5% ownership share in OpTic IP LLC, which has been valued at a minimum of $100 million in private markets.
Scump, who has retired from the CDL, claims that even after leaving the league, Activision continues to use its monopoly power to restrict former players from engaging in various revenue opportunities related to professional Call of Duty.
Activision has responded to the lawsuit, stating that Rodriguez and Abner demanded millions of dollars to avoid litigation, and when their demands were not met, they decided to file the lawsuit. The company vehemently denies the claims, asserting that they have no basis in fact or law. Activision also expresses disappointment with OpTic Gaming members for bringing forth a lawsuit that disrupts the esports community, including team owners, players, fans, and partners who have invested significant time and energy in the success of the Call of Duty League.
The OpTic Gaming members are seeking $680 million in damages through this lawsuit. The outcome of this legal battle could have significant implications for the competitive gaming industry and the future of Call of Duty tournaments.
Analyst comment
Positive: The OpTic Gaming members’ lawsuit against Activision raises concerns about the monopoly created by the Call of Duty League, potentially leading to increased competition and opportunities for players.
Short Analysis: The market may witness a shake-up as the lawsuit challenges Activision’s monopoly in the professional Call of Duty market. If successful, it could result in more competition and opportunities for players, potentially diversifying and expanding the market. However, the outcome of the lawsuit and its impact on the market remains uncertain.
