Yesterday, Hector “H3CZ” Rodriguez, the CEO and former star player of Optic Texas, a team in the Call of Duty League, filed a lawsuit against Activision Blizzard. Alongside him, Seth “Scump” Abner joined in the legal action. The lawsuit alleges that Activision Blizzard has unlawfully monopolized the professional Call of Duty leagues and engaged in anti-competitive and extortionate practices detrimental to players and teams.
According to reports from Bloomberg Law, the lawsuit claims that Activision Blizzard began establishing its monopoly in January 2016 by acquiring Major League Gaming, effectively eliminating a significant competitor to its own Call of Duty esports league.
The suit further alleges that Activision Blizzard refused to grant licenses to other tournament and league organizers, ensuring that its Call of Duty League would be the sole entity in the market.
Activision Blizzard limited the league to 12 teams and demanded a hefty $27.5 million entry fee from any potential teams, along with the requirement of an “Activision-approved corporate partner” for teams owned by individuals.
One pivotal moment mentioned in the lawsuit involves Rodriguez’s attempt to become an independent team owner in late 2020 by purchasing Immortals Gaming Club’s slot in the league. Allegedly, Activision Blizzard rejected Rodriguez’s bid, stating he would need to partner with billionaire investors who fit the company’s preferred profile or exit the professional Call of Duty market altogether.
Eventually, Envy Gaming, representing these investors, demanded a significant ownership share in Optic, leaving Rodriguez with the choice of relinquishing control of the team or devaluing it by dropping its Call of Duty team.
The lawsuit also highlights Activision Blizzard’s Competitive Balance Tax as a means of suppressing wages, a tactic that drew scrutiny from the US Department of Justice in a previous lawsuit against the company.
Furthermore, the suit mentions aggressive tactics used on players like Abner, who were allegedly pressured into agreeing to legal documents during a photoshoot without adequate time for review or legal consultation, under the threat of exclusion from the Activision CoD League.
The plaintiffs argue that Activision Blizzard’s actions severely restricted teams’ and players’ ability to earn compensation, sponsorship, and streaming revenue outside of the company’s ecosystem.
They assert that Activision Blizzard’s monopolistic power enabled its self-interested decisions and failure to innovate or maintain the quality of the Call of Duty League.
The lawsuit seeks over $680 million in damages across various legal claims, in addition to legal fees. As of now, Activision Blizzard has not responded to requests for comment.
Optic Texas is scheduled to play against the Los Angeles Thieves this Sunday.
