Accused of engaging in “100% illegal monopolistic practices” in running the Call of Duty League, Activision Blizzard faces a $680 million damages claim. In fact, this is the goal of the lawsuit that Hector “H3CZ” Rodriguez – CEO and co-owner of the OpTic Texas team – and Seth “Scump” Abner – former player of the same team – have filed against the video game giant, now part of Microsoft.
“Activision secured a 100% monopoly on the Call of Duty professional leagues and tournaments market, used this market power to eliminate competition, and forced team owners and players to either exit the market completely or accept draconian anti-competitive conditions that were only favorable to Activision and its monopoly. – Rodriguez and Abner v. Activision Blizzard”
Specifically, the 44-page document drafted by Rodriguez and Abner’s lawyers accuses Activision Blizzard of banning teams and players from competing outside the Call of Duty League. There is also talk of the request of 27.5 million dollars for a place in the tournament, the obligation to pay 50% of the revenues from tickets and gadgets into the coffers of Activision and limits imposed on the possibilities of players to secure their own sponsorships.
In addition, Activision Blizzard would have demanded exclusivity on the most lucrative sponsorships, such as those coming from companies that produce energy drinks, and would also have forced players to sign binding agreements, under penalty of exclusion from the tournament, without giving them the opportunity to forward them first to their lawyers.
Activision Blizzard created the Call of Duty League in 2019, putting an end to previous official tournaments in favor of a competition that features, like the Overwatch League, a structure similar to that of a good portion of North American professional sports leagues. So similar that, at one point, there was also a maximum salary for players.
The cap on compensation, however, caught the attention of the U.S. Department of Justice, which was concerned that this rule could unfairly reduce players’ revenue. The investigations that prompted Activision Blizzard first to the prompt removal of the rule in 2021 and then to the plea bargain at the end of the investigation, in 2023, then began. This time, though, the Santa Monica-based company seems hell-bent on doing battle.
“Mr. Rodriguez (aka OpTic H3CZ) and Mr. Abner (aka Scump) demanded that Activision pay them tens of millions of dollars to avoid this baseless litigation, and when their demands were not met, they filed a lawsuit.
We will vigorously defend ourselves against these demands, which have no basis in fact or in law. We are disappointed that these members of the esports community have filed this lawsuit, which is disruptive to the team owners, players, fans, and partners who have invested so much time and energy into the success of the Call of Duty League. – Delaney Simmons, Activision Blizzard spokesperson (in response to The Verge)”
