Activision Blizzard is facing a new lawsuit after professional Call of Duty (COD) gamers accused the company of unlawfully monopolizing the leagues and tournaments.
The lawsuit was filed by professional gamers Hector Rodriguez and Seth Abner, which could potentially cost the company $680 million in damages.
Activision Blizzard Faces Monopoly Lawsuit for COD
According to the lawsuit, Activision Blizzard is holding an "unlawful 100% monopoly" over COD leagues and tournaments, citing that other entities are prevented from entering the market.
The court document also detailed that teams participating in leagues are co-conspirators, allowing the company to maintain its monopolistic practices. Previously, Activision limited the tournament to 12 teams, calling it a "closed league" in 2019.
In addition, the participating teams were also allegedly "coerced" to pay a fee of $27.5 million as an entry payment. The plaintiffs claimed that Activision forced the teams to agree with the contractual terms.
Alleged Monopolistic Practices of Activision Causes Decline in Gamer Revenue
In addition, the lawsuit also argued that the current monopoly is causing the gamer revenue to go down. Activision is reportedly asking companies for a 50% share of the revenue generated on sales, sponsorships, streams, and more.
Rodriguez shared that the practice caused him to enter a partnership where investors demanded over 90% share in his company. Meanwhile, Activision's spokesperson stated that the plaintiffs demanded tens of millions of dollars, and when the demands were not met, the duo pursued the filing.
Moreover, Activision remained firm that the company would strongly defend itself from the claims, citing that there is no basis in fact or in law for the accusations.
Last year, Microsoft successfully acquired Activision for $69 billion after a series of investigations from the Federal Trade Commission.
Related Article : Call of Duty Implements New Tactic to Punish Game Cheater
