Judge Allows Gamers' Antitrust Claim Against Electronic Arts

Authored by Mark Hefflinger on June 9, 2009 - 11:05am.
San Francisco - A federal judge in San Francisco has allowed antitrust claims filed by two gamers against "Madden NFL" game publisher Electronic Arts (NASD: ERTS) to go forward, GamePolitics reports.

The lawsuit alleges that EA has a monopoly on pro football video games, as the exclusive holder of rights to use NFL team logos and players' names and likenesses.

U.S. District Court Judge Vaughn Walker rejected EA's motion to dismiss the antitrust claim, stating that the plaintiffs' case "adequately alleges that there are no substitutes for interactive football software without the markers of actual teams and players."

The lawsuit further alleges that after EA signed its exclusive NFL deal, rival Take-Two Interactive (NASD: TTWO) discontinued its "NFL 2K" game franchise, which had until that point succeeded in creating competitive pricing for football games.

The judge limited class action claims to residents of California and D.C., as that is where the two plaintiffs reside.

 

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(GamePolitics)

Comments

Ridiculous. There are other

Ridiculous. There are other football games out there. They don't have NFL players or franchises? So what? They're not has high in quality? That's not EA's problem. EA is not preventing any other company from making a football game either.

get informed

Actually, they are preventing other companies from using professional team names, logos, stadiums and so on because of a licensing agreement with the NFL that they just extended until 2012. I came across this while doing some research for a presentation for economics class and thought it was a great portrayal of how monopolies are still forming in our so called advanced economy. It is amazing what you can learn if you pay attention. PS, try to know what you are talking about before you criticize others.

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