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The company's monopoly has limited the opportunities of professional players-gamers want justice.
Activision Blizzard is at the center of a lawsuit accused of monopolizing the Call of Duty league and tournament market. Professional players Hector "H3cz" Rodriguez and Seth "Scump" Abner filed a lawsuit in federal court in California, claiming that the gaming giant violates antitrust laws by preventing potential competitors from entering the market and forcing players and team owners to agree to "unfavorable financial terms."
Gamers point to restrictions on their ability to make money from sources other than Activision, including support or streaming, as well as mergers aimed at strengthening the company's perceived monopoly power. In a response statement, the company's representative claims that the plaintiffs "demanded payment of tens of millions of dollars from Activision to avoid unreasonable legal proceedings, and when their claims were not met, they sued."
Until 2019, the Call of Duty league and tournament market was competitive, with several organizations, including Activision, GameStop, and Major League Gaming, hosting events with moderate entry fees. However, according to players, that same year Activision began requiring top players and teams to agree to "rent requirements and various contractual restrictions" that allegedly violate the Sherman Act, which, among other things, prohibits illegal trade restrictions.
According to the lawsuit, teams must pay an entry fee of $27.5 million to participate in tournaments, give Activision half of their revenue from ticket sales and sponsorship, and transfer the company the exclusive right to conclude contracts with the most profitable sponsors and broadcasters.
The lawsuit also concerns Activision's acquisition in 2016 of Major League Gaming, which at that time was the leading organizer of professional Call of Duty tournaments. The acquisition was not controlled by the Federal Trade Commission. Players claim that since Activision owns the copyright to the game, the company refused to grant licenses to the organizers of other competitions.
The plaintiffs are charged with unfair competition and violating various antitrust laws, demanding at least $100 million. and an injunction against further anti-competitive behavior of the company. Activision did not provide a comment.
Activision Blizzard is at the center of a lawsuit accused of monopolizing the Call of Duty league and tournament market. Professional players Hector "H3cz" Rodriguez and Seth "Scump" Abner filed a lawsuit in federal court in California, claiming that the gaming giant violates antitrust laws by preventing potential competitors from entering the market and forcing players and team owners to agree to "unfavorable financial terms."
Gamers point to restrictions on their ability to make money from sources other than Activision, including support or streaming, as well as mergers aimed at strengthening the company's perceived monopoly power. In a response statement, the company's representative claims that the plaintiffs "demanded payment of tens of millions of dollars from Activision to avoid unreasonable legal proceedings, and when their claims were not met, they sued."
Until 2019, the Call of Duty league and tournament market was competitive, with several organizations, including Activision, GameStop, and Major League Gaming, hosting events with moderate entry fees. However, according to players, that same year Activision began requiring top players and teams to agree to "rent requirements and various contractual restrictions" that allegedly violate the Sherman Act, which, among other things, prohibits illegal trade restrictions.
According to the lawsuit, teams must pay an entry fee of $27.5 million to participate in tournaments, give Activision half of their revenue from ticket sales and sponsorship, and transfer the company the exclusive right to conclude contracts with the most profitable sponsors and broadcasters.
The lawsuit also concerns Activision's acquisition in 2016 of Major League Gaming, which at that time was the leading organizer of professional Call of Duty tournaments. The acquisition was not controlled by the Federal Trade Commission. Players claim that since Activision owns the copyright to the game, the company refused to grant licenses to the organizers of other competitions.
The plaintiffs are charged with unfair competition and violating various antitrust laws, demanding at least $100 million. and an injunction against further anti-competitive behavior of the company. Activision did not provide a comment.
