In a lawsuit filed in a Los Angeles federal court, prominent players of the video game Call of Duty accused Microsoft Corp.'s MSFT Activision Blizzard Inc. of establishing an illegal monopoly over professional leagues and tournaments for the game.
The suit states that Activision, along with other entities like GameStop Corp. GME and Major League Gaming, once organized open competitions accessible to various teams and players, Bloomberg Law reported.
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However, in late 2019, the suit alleges that Activision seized control of the market, shutting down other leagues and leaving only the Activision Call of Duty league operational.
The plaintiffs argue that playing professional Call of Duty equates to the esports equivalent of professional football, with top players benefiting from sponsorships, endorsements, and social media attention. However, since Activision's takeover, players have allegedly been unable to earn compensation from other sources. Some popular teams were reportedly excluded from competition for failing to comply with Activision's terms.
Hector Rodriguez, a.k.a. H3CZ, a key figure in the pro Call of Duty scene, claims he was coerced into a “financially devastating” partnership to continue competing. Activision allegedly demanded a significant ownership share in Rodriguez's company, among other restrictions.
The lawsuit asserts that Activision's monopoly was imposed without collaboration with pro team owners and players, leveraging its trademark and ownership of Call of Duty to dominate the pro gaming market. Rodriguez and another top player, Seth Abner (Scump), are seeking over $680 million in damages.
"Mr. Rodriguez (aka OpTic H3CZ) and Mr. Abner (aka Scump) demanded that Activision pay them tens of millions of dollars to avoid this meritless litigation, and when their demands were not met, they filed," an Activision Blizzard spokesperson said in a statement.
"We will strongly defend against these claims, which have no basis in fact or in law. We are disappointed that these members of the esports community would bring this suit which is disruptive to team owners, players, fans, and partners who have invested so much time and energy into the Call of Duty League’s success."
The case, brought by Dynamis LLP and Aaron Katz Law LLC on behalf of Rodriguez, is ongoing in the Central District of California.
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