In a bombshell lawsuit filed [PDF format] Thursday in a Los Angeles federal court, two of the biggest names in Call of Duty esports accused video game giant Activision Blizzard of illegally monopolizing professional leagues and tournaments for the best-selling first-person shooter franchise.

Hector “H3CZ” Rodriguez and Seth “Scump” Abner, leaders of top esports organization OpTic Gaming and superstar players with millions of fans, alleged that Activision has engaged in anticompetitive conduct to seize total control over the lucrative Call of Duty esports ecosystem since 2019. They argue this has restricted their ability to grow their brands, limited their revenue opportunities, and weakened the vibrancy of a once thriving competitive scene.

The two esports figures are seeking $680 million in damages in the lawsuit. According to court documents reviewed by Bloomberg Law, which first reported the lawsuit, Rodriguez and Abner claim Activision’s actions have violated federal antitrust laws and amount to an illegal monopoly.

Activision acquired sole ownership of the Call of Duty esports leagues in 2019, after previously splitting operations with other tournament organizers like GameStop and Major League Gaming. Rodriguez and Abner allege that Activision started imposing strict restrictions that prevented independent esports teams and players from participating in any events outside Activision’s own Call of Duty League (CDL).

This meant losing access to many non-league tournaments where pros previously honed skills and connected with fans. “Activision now holds an unlawful one hundred percent monopoly over that lucrative and once vibrant market,” the lawsuit states.

The plaintiffs also contend that Activision used its monopoly power to coerce independent esports organizations into unfair partnership agreements in order to compete in the restrictive Call of Duty League. Rodriguez said he was forced into a deal with billionaire investors, who took a 92.5% stake in OpTic, just to gain entry into the league, which he called “financially devastating.”

Twelve esports teams reportedly had to pay $27.5 million each for a league slot. On top of that, they had to agree to strict limitations on monetizing their participation. The lawsuit alleges teams cannot generate any revenue from Call of Duty content outside of league events controlled by Activision. This prevents them from selling merchandise, creating their own branded content and benefiting from sponsorships.

By monopolizing the professional scene, Activision has sapped much of the energy and vibrancy from the Call of Duty esports ecosystem, the lawsuit claims. Without healthy competition from independent leagues and tournaments, fans have fewer opportunities to watch top players in action outside the official Call of Duty League.

In acquiring exclusive control, Activision has flouted antitrust laws and stifled competition, the plaintiffs argue. They want Activision to relinquish its monopoly power and are seeking hefty financial damages.

Activision strongly denied the allegations, saying the claims have no merit. A spokesperson said Rodriguez and Abner demanded tens of millions to avoid litigation, then sued when Activision refused to pay. The gaming giant vowed to mount a vigorous legal defense against what it sees as baseless claims.

The high-profile lawsuit represents a serious legal challenge to Activision’s stewardship of the popular Call of Duty esports scene. With Rodriguez and Abner commanding huge fan bases as leading figures in the competitive community, the case also threatens public relations backlash as two of the franchise’s biggest stars square off against the publisher.

The outcome of the lawsuit could reshape the future of Call of Duty esports after years of unrest under Activision’s exclusive control. If successful, the legal action would loosen Activision’s grip on competitive play and open the door to renew competition in leagues and tournaments. That could benefit players, organizers and fans seeking a restored ecosystem with thriving options.