- Call of Duty gamers Hector Rodriguez and Seth Abner file lawsuit against Activision for alleged monopolization of Call of Duty tournaments.
- Lawsuit claims Activision’s acquisition of Major League Gaming and establishment of its own league stifled competition and imposed unfair contract terms.
- Activision faces legal scrutiny after settling a previous lawsuit with the U.S. Justice Department over allegations of suppressing professional gamers’ wages.
Activision Blizzard, the video game behemoth, is facing legal action in the United States for allegedly monopolizing the realm of organized gaming centered around its flagship franchise, “Call of Duty.”
In a lawsuit filed in a federal court in Los Angeles, professional gamers Hector Rodriguez and Seth Abner assert that Activision is unlawfully dominating the lucrative market for Call of Duty leagues and tournaments, stifling competition in the process.
The lawsuit highlights the immense popularity of Call of Duty, a groundbreaking first-person-shooter game introduced in 2003, which has propelled Activision to substantial annual revenue figures.
Responding to the allegations, Activision stated its intent to vigorously defend against what it perceives as baseless claims lacking factual or legal foundation. The company disclosed that it rejected a pre-lawsuit demand from the plaintiffs seeking tens of millions of dollars.
The acquisition of Activision by Microsoft last year for $69 billion remains under scrutiny by the U.S. Federal Trade Commission. In 2016, Activision acquired Major League Gaming for $46 million, a move described in the lawsuit as consolidating its dominance over Call of Duty competitions.
According to the lawsuit, the Call of Duty competitive landscape was robust until 2019 when Activision initiated its own league, effectively eliminating competition and imposing stringent contract terms on teams and players.
Teams that refused or couldn’t comply with Activision’s demands allegedly faced exclusion from the professional Call of Duty market, as outlined in the lawsuit, which also includes Rodriguez’s company, HECZ LLC, as a plaintiff.
Activision’s legal troubles aren’t new; last year, it settled a lawsuit brought by the U.S. Justice Department, which accused the company of suppressing professional gamers’ wages in esports leagues. As part of the settlement, Activision agreed to refrain from imposing salary caps without admitting any wrongdoing.
Aren’t there other leagues?