Los Angeles, California – Professional gamers from Los Angeles, California, have filed a lawsuit against gaming giant Activision Blizzard, accusing the company of monopolizing the market for Call of Duty leagues and tournaments. The lawsuit, filed in a California federal court, alleges that Activision Blizzard violates antitrust laws by preventing potential competitors from entering the market and coercing players and team owners into accepting “extortionate financial terms.”
According to the complaint, the market for Call of Duty leagues and tournaments was competitive until 2019, with multiple entities hosting events, including Activision, GameStop, and Major League Gaming. However, the gamers allege that Activision began imposing restrictions on players and teams, including demanding high entry fees, revenue sharing requirements, and exclusive rights to contract with lucrative sponsors and broadcasters.
The lawsuit claims that the gaming giant’s acquisition of Major League Gaming Corporation in 2016, which was the leading organizer of professional Call of Duty tournaments at the time, further solidified its monopolistic position in the market. The gamers also take issue with Activision’s refusal to grant licenses to organizers and operators of other competitions because the company owns the copyright to the game.
The plaintiffs are seeking at least $100 million in damages and a court order prohibiting further anticompetitive conduct from Activision. This legal action comes after Activision settled a lawsuit brought by the Department of Justice over rules that allegedly stymied competition for players in its esports leagues and suppressed wages. As the gaming industry continues to grow, issues of antitrust and unfair competition are likely to become more prevalent, impacting not only gamers and team owners but also the broader gaming community.