Gamers Seek Class-Action Status For Suit Alleging EA Monopoly
Two video gamers are "seeking class-action status" for a suit filed in U.S. District Court against Electronic Arts (EA) alleging that the company's "exclusive licensing agreements with the [NFL, AFL and NCAA] have created a monopoly for football video games," according to Ryan Kim of the S.F. CHRONICLE. The suit seeks an "injunction to end the licensing agreements as well as restitution for games, saying they have been forced to pay higher prices due to the lack of competition." Washington-based attorney Stuart Paynter, who reps the gamers, said, "EA, in response to rival games like NFL 2K5, could have played fair, but they decided to cheat." Paynter added that EA in '04 "faced its stiffest challenge" with the release of "NFL 2K5," developed by Take-Two Interactive and Sega Corp., and EA was forced to cut prices of its "Madden NFL 05" title from $49.95 to $29.95 "to keep pace with NFL 2K5, which sold for nearly $30 less." Kim notes within months, EA "signed exclusive licensing deals with the NFL, the AFL and the NCAA that prohibited other video game companies from using the teams, logos or players from those respective organizations," allowing EA to "again raise its prices to $49.95." Paynter said that the suit is "not targeting the NFL, AFL or NCAA ... because it was EA that exhibited a pattern of conduct." EA Senior Manager of Corporate Communications Mariam Sughayer said that the company cannot comment on pending litigation (S.F. CHRONICLE, 6/13). Paynter said the "general matter under antitrust is the amount of the overcharge; the price it would have sold under in the competitive market." ARSTECHNICA.com's Ben Kuchera wrote assigning a dollar amount "to these damages could be complicated." However, even if EA "would have only dropped its price $5 for each football title sold, the damages awarded could be extensive" (ARSTECHNICA.com, 6/12).
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