It has only been three months since the Microsoft deal concluded, yet Activision Blizzard finds itself right back in the courtroom on the receiving end of a $680 million lawsuit alleging anticompetitive business practices.
Earlier this week, members of the renowned OpTic Gaming esports organization initiated a lawsuit against Activision Blizzard, accusing the Call of Duty producer of maintaining an “illegal monopoly” over professional leagues and tournaments. The lawsuit claims that prior to Activision’s 2019 takeover of the professional circuit, players had numerous opportunities to participate in tournaments with “modest entry fees,” allowing fans to watch their favourite esports competitors. Since 2019, when all leagues except the Call of Duty League were effectively shut down, the lawsuit alleges Activision did so to eliminate competition and monopolize the market.
The lawsuit claims that before 2019, players could secure their own sponsorships, likening Call of Duty to professional football in terms of its status in the esports world, allowing them to earn through these deals. However, following the takeover, some esports league competitors have exited the scene or have been excluded due to disagreements with Activision’s terms. Plaintiff Hector Rodriguez, who leads the OpTic Call of Duty esports team, contends he was coerced into a “financially ruinous” unilateral partnership. According to the claim, Activision purportedly pressured Rodriguez, also known as “H3CZ,” into partnering with billionaire investors who required a 92.5% ownership stake in his company.
The lawsuit contends that the “sole league system was enforced on professional team owners and players without a collaborative agreement,” further accusing the owner of Call of Duty of engaging in anti-competitive practices. It alleges Activision used the Call of Duty trademark and ownership to dominate the market.
An Activision spokesperson said, “Mr. Rodriguez (also known as OpTic H3CZ) and Mr. Abner (also known as Scump) demanded tens of millions of dollars from Activision to avoid this baseless lawsuit. When their demands were not met, they filed.” The spokesperson added, “We will vigorously defend against these claims, which lack any foundation in fact or law.” Fans interested in a detailed analysis of the lawsuit can visit the Bloomberg Law website while awaiting further information.
