'Call of Duty' gamers sue Activision for monopoly in tournaments, leagues

Activision Blizzard faces a US lawsuit, which claims the video game maker restricts competition for organised gaming which involves war simulation game “Call of Duty.”

Professional gamers Hector Rodriguez and Seth Abner filed an antitrust lawsuit in Los Angeles federal court on Thursday against the Microsoft-owned developer, which unlawfully monopolises the lucrative market for its flagship game's leagues and tournaments.

Call of Duty was introduced in 2003 as a first-person-shooter game, becoming one of the industry’s all-time best sellers.

It has propelled Activision to billions of dollars in annual revenue, as per the lawsuit.

In a statement, Activision said it will "strongly defend against these claims, which have no basis in fact or in law." The company has refused a pre-lawsuit demand from plaintiffs for "tens of millions of dollars."

Activision was acquired by Microsoft last year for $69 billion, in a deal that still faces scrutiny from the US Federal Trade Commission. 

The company in 2016 paid $46 million for owning Major League Gaming, which was the leading competitor for Call of Duty according to the lawsuit. 

League and tournament play for Call of Duty was a "vibrant, competitive product market" until 2019, when Activision moved to open its own league and eliminate competition, the lawsuit alleged.

Activision later went on to impose a “draconian” contract provisions on teams and players, according to the lawsuit.

“Teams that did not (or could not) accede to Activision’s extortionate demands were cut out of the professional Call of Duty market entirely,” the lawsuit said. Rodriguez's company HECZ LLC is also a plaintiff.

Last year, Activision settled a lawsuit by the US Justice Department accusing the company of suppressing gamers’ wages in professional esports leagues.

Activision agreed to refrain from placing any caps on salaries. It did not admit any wrongdoing.

(With Reuters Inputs)