Two prominent figures in the world of professional Call of Duty are taking legal action against game publisher Activision Blizzard, alleging that the company has monopolized the market and forced unfair financial terms upon players and teams. Hector “H3CZ” Rodriguez, president of Optic Gaming, and pro player Seth “Scump” Abner are seeking a staggering $680 million in damages from the gaming giant.
The lawsuit, recently filed in federal court, accuses Activision Blizzard of essentially cornering the market for Call of Duty esports. Prior to the formation of the Activision-owned Call of Duty League in 2019, competitive Call of Duty tournaments were operated by multiple organizations, including GameStop and Major League Gaming. However, Activision’s acquisition of Major League Gaming effectively shut down all other professional Call of Duty esports leagues and tournaments, according to the lawsuit.
The lawsuit also alleges that Activision Blizzard has used its monopoly as a “virtual nuclear weapon,” forcing players and teams to accept unfair and anti-competitive terms, or risk being forced out of the market entirely. The Call of Duty League requires teams to pay a $27.5 million entry fee, with Activision taking a significant 50% cut of revenue from ticket sales, sponsorships, and other streams of income. Players are even prohibited from commercializing their gameplay on platforms like Twitch or YouTube, with potentially lucrative brand sponsorship deals being snatched up by Activision.
The lawsuit also contends that Activision’s lack of a collective bargaining agreement between team owners and players further exacerbates the issue, leaving players and teams at the mercy of the company’s harsh financial terms.
Adding insult to injury, earlier this year, Activision Blizzard’s esports division was subject to significant layoffs, casting doubt on the future of the Call of Duty League. The lawsuit claims that the company has essentially “run the Activision CoD League into the ground.”
In response to the lawsuit, an Activision Blizzard spokesperson stated that the claims have “no basis in fact or in law” and that the company will strongly defend itself against the allegations. The spokesperson expressed disappointment that the lawsuit could disrupt the efforts put forth by team owners, players, fans, and partners who have invested time and energy into the success of the Call of Duty League.
This is not the first time Activision Blizzard has faced legal trouble in relation to its esports endeavors. The company settled a civil antitrust lawsuit with the US Department of Justice last year over concerns that the Overwatch and Call of Duty leagues violated antitrust law by capping player salaries in the form of a “competitive balance tax,” something the company removed from the leagues in 2021.
In my opinion, the allegations made in the lawsuit against Activision Blizzard are concerning and warrant a thorough investigation. If the claims are found to be true, it would be a significant blow to the integrity of the esports industry and could have far-reaching implications for the future of professional gaming. It is crucial for all parties involved to engage in transparent and fair practices to ensure that players, teams, and fans can continue to enjoy esports without the shadow of monopolistic or anti-competitive behavior looming over the industry.