LOS ANGELES, CALIFORNIA – Professional gamers Hector “H3cz” Rodriguez and Seth “Scump” Abner have filed a lawsuit against Activision Blizzard, accusing the gaming giant of monopolizing the market for Call of Duty leagues and tournaments. The lawsuit, filed in a California federal court, alleges that Activision violates antitrust laws by preventing potential competitors from entering the market and coercing players and team owners into accepting unfair financial terms.
The gamers claim that the market for Call of Duty leagues and tournaments was competitive until 2019, with multiple entities hosting events. However, that year, Activision allegedly began imposing restrictions on players and teams, demanding high entry fees and a large percentage of revenue from ticket sales and sponsorships. They also allege that the company’s acquisition of Major League Gaming Corporation further solidified its monopoly power.
Activision’s league, modeled after traditional sports leagues, did not have a collective bargaining agreement with players and team owners, unlike other professional sports leagues. The gamers argue that while players in other pro sports leagues have agreed to salary restrictions through the collective bargaining process, esports players are not members of a union and never negotiated for the rules.
The lawsuit seeks at least $100 million in damages and a court order prohibiting further anticompetitive conduct. This legal action comes after Activision settled a previous suit brought by the Department of Justice, which accused the company of imposing rules that suppressed wages and stymied competition for players in its esports leagues.
The lawsuit against Activision sheds light on the growing legal battles within the gaming industry, as companies face increasing scrutiny over their business practices and treatment of professional gamers. With the ongoing evolution of esports and the increasing popularity of competitive gaming, these legal challenges could have significant implications for the future of the industry.