What is Scump and H3CZ's lawsuit against Activision? Alleged Call of Duty League monopoly explained

Seth “Scump” Abner, along with Hector “H3CZ” Rodriguez, has filed a federal lawsuit against Activision, seeking $680 million in damages. The former is a Call of Duty professional player, while the latter is the owner of OpTic Gaming. They claim that the company has monopolized the Call of Duty esports scene, asserting exclusive rights to lucrative sponsors, broadcasters, and revenue streams.

This article aims to provide an in-depth analysis of the lawsuit, detailing the allegations made by Scump and H3CZ against Activision as well as offering readers a complete understanding of the situation.

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Scump and H3CZ's Call of Duty League monopoly lawsuit explored

The lawsuit, filed on February 15, 2024, by Scump and H3CZ against Activision Blizzard, alleges that the company abuses its "monopoly power" to prevent "would-be" competitors and coerce Call of Duty players and team owners into accepting "extortionate financial terms."

According to the suit, Activision wields an ''unlawful monopoly power as a virtual nuclear weapon,'' and got 12 CDL teams to pay a $27.5 million in entry fee for the "privilege" of competing in the official CoD League. According to Scump and H3CZ, this company also requires a 50% share of the money generated by teams through ticket sales, sponsorships, and other revenue streams.

According to the lawsuit, this studio exercises exclusive contract rights and restricts CDL (Call of Duty League) teams and players, prohibiting them from supporting any COD league or tournament outside the official Activision-produced event.

Allegedly, those unwilling or unable to comply with the terms faced exclusion from the market, while those who do agree with this company's conditions are subjected to additional economic burdens due to "Activision's anti-competitive terms." Due to this, Hector Rodriguez reportedly suffered "economic injury."

In September 2020, Rodriguez newly re-acquired OpTic Brand as the individual owner of an Activision Call of Duty League team and attempted to enter the newly monopolized market but Activision stopped that from happening.

In late 2021, the company forced him to partner with wealthy investors of Activision's preference. These investors demanded a 92.5% ownership share in Rodriguez's company if his OpTic-branded team continued to compete in the professional CoD League.

Similarly, Scump, a retired player from the Activision CoD League, also reportedly faced restrictions on accepting various revenue opportunities associated with professional CoD.

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Activision's response to Scump and H3CZ's Call of Duty League monopoly lawsuit

After the lawsuit, Activision provided an official statement, along with a counter-allegation, claiming that Scump and H3CZ proposed a settlement in the tens of millions, which the company had refused. This allegedly led Scump and H3CZ to file the lawsuit. The studio's complete statement is below:

"Mr. Rodriguez (aka OpTic H3CZ) and Mr. Abner (aka Scump) demanded that Activision Blizzard pay them tens of millions of dollars to avoid this meritless litigation, and when their demands were not met, they filed. We will strongly defend against these claims, which have no basis in fact or in law. We are disappointed that these members of the esports community would bring this suit which is disruptive to team owners, players, fans, and partners who have invested so much time and energy into the Call of Duty League’s success."

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The lawsuit is pending, and its outcome is uncertain. All involved parties will present evidence to support their case. As things stand currently, it is unclear how the rest of the Call of Duty League 2024 season will unfold.

Stay tuned to Sportskeeda for more updates.