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Call of Duty maker Activision Blizzard is facing a lawsuit by gamers who allege constraints on competition in organised gaming related to the flagship franchise. Professional gamers Hector Rodriguez and Seth Abner filed an antitrust lawsuit in a Los Angeles federal court, asserting that Activision is monopolising the market for Call of Duty leagues and tournaments unlawfully.
“Call of Duty,” a first-person-shooter game introduced in 2003, is one of the industry’s top sellers and has contributed significantly to Activision’s annual revenue, according to the lawsuit.
The lawsuit claims that Call of Duty leagues and tournaments were competitive until 2019 when Activision launched its own league, allegedly eliminating competition. The company allegedly imposed severe contract terms on teams and players.
The plaintiffs allege Activision imposed unfair contract terms on teams and players. They claim teams were excluded from the professional Call of Duty market if they did not agree to these terms.
What Activision has to say
Activision responded in a statement, announcing its intent to strongly defend against the claims. The video game comapny asserted they lack factual or legal basis. The company disclosed its refusal to comply with a pre-lawsuit demand from the plaintiffs for millions of dollars.
Last year, Microsoft acquired Activision for $69 billion, a deal currently under US Federal Trade Commission review. Call of Duty was a point of contention during the hearings on Microsoft’s acquisition of the gaming company.
In 2016, Activision acquired Major League Gaming for $46 million, identified by the lawsuit as the primary Call of Duty competition organiser.
In a separate legal matter last year, Activision settled a lawsuit with the US Justice Department, which accused the company of suppressing wages in professional esports leagues. As part of the settlement, Activision agreed not to impose salary caps but did not admit any wrongdoing.
“Call of Duty,” a first-person-shooter game introduced in 2003, is one of the industry’s top sellers and has contributed significantly to Activision’s annual revenue, according to the lawsuit.
The lawsuit claims that Call of Duty leagues and tournaments were competitive until 2019 when Activision launched its own league, allegedly eliminating competition. The company allegedly imposed severe contract terms on teams and players.
The plaintiffs allege Activision imposed unfair contract terms on teams and players. They claim teams were excluded from the professional Call of Duty market if they did not agree to these terms.
What Activision has to say
Activision responded in a statement, announcing its intent to strongly defend against the claims. The video game comapny asserted they lack factual or legal basis. The company disclosed its refusal to comply with a pre-lawsuit demand from the plaintiffs for millions of dollars.
Last year, Microsoft acquired Activision for $69 billion, a deal currently under US Federal Trade Commission review. Call of Duty was a point of contention during the hearings on Microsoft’s acquisition of the gaming company.
In 2016, Activision acquired Major League Gaming for $46 million, identified by the lawsuit as the primary Call of Duty competition organiser.
In a separate legal matter last year, Activision settled a lawsuit with the US Justice Department, which accused the company of suppressing wages in professional esports leagues. As part of the settlement, Activision agreed not to impose salary caps but did not admit any wrongdoing.
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