Gamers sue EA over football exclusivity

By Brendan Sinclair, GameSpotPosted Jun 11, 2008 12:35 pm PT

Pair of Madden purchasers going to court over "blatantly anticompetitive conduct" by locking down NFL, NCAA, and Arena Football licenses.

Electronic Arts already has antitrust issues on its plate, given that the company is currently seeking federal approval to acquire Take-Two Interactive. Last week that plate got a little more crowded when a pair of gamers in Washington, DC and California filed suit against the publisher in the US District Court of Northern California, alleging "blatantly anticompetitive conduct" in the way that it has cornered the football-gaming genre.

The class-action complaint focuses on Electronic Arts' actions since 2004, when Take-Two Interactive's NFL 2K5 was released at a $19.99 price point and sold more than 2.9 million copies in the US, according to NPD figures. Take-Two's previous football game, ESPN NFL Football, sold fewer than 450,000 copies in the US. Meanwhile, EA dropped the price of its Madden 2005 from $49.95 to $29.95 in response.

"This vigorous competition benefited consumers," according to the suit. "Electronic Arts could have continued to compete by offering a lower price and/or a higher quality product. Instead, Electronic Arts quickly entered into a series of exclusive agreements with the only viable sports football associations in the United States: the National Football League, the Arena Football League, and NCAA Football."

With no Take-Two competitor the following year, the suit notes that Electronic Arts raised the price of Madden 2006 back to $49.95, an increase of nearly 70 percent. The suit also brings up Electronic Arts' attempted acquisition of Take-Two, saying that it "would remove one of the few companies with the ability and expertise to compete in the market for interactive football software" if EA somehow lost its exclusive deals.

The suit does not address Take-Two's bid to reenter the football market with former player licenses but no professional league attached. That game, All-Pro Football 2K8, sold a little more than 275,000 copies at US retailers, according to the NPD Group.

The plaintiffs are asking for restitution and damages for those who purchased an Electronic Arts football game since August of 2005, disgorgement of all profits made as a result of anticompetitive actions, and that the infringing agreements be declared null and void.

A representatives with Electronic Arts said the publisher could not comment on pending legal matters. The plaintiffs had not responded to GameSpot's requests for comment as of press time.

851 Comments

  • Grimmson2

    Posted Nov 13, 2009 3:40 pm PT

    I'm waiting patiently till 2021 for ESPN NFL 21K
    Which i'm asuming if it's made it will Blow EA out of the water!!!

  • Grimmson2

    Posted Nov 13, 2009 3:38 pm PT

    If you vow never to buy a EA sports game!!!

  • sofakingsweet25

    Posted Aug 15, 2009 10:12 pm PT

    i'm still playing 2k5, forget the new generation of madden. It's a pain to wait for EA sports's attempt at very very very slowly "improving" the only decent football game us gamers want to play. Wake me up when all the madden glitches and superhuman jumps are fixed.

  • dellis66

    Posted Jun 24, 2009 8:52 am PT

    The video game industry is less mature than the TV business. In TV there are a handful of strong players with ample resources that keep the playing field balanced and very competitive (ratings). Just like TV, the video games industry is basically in the entertainment sector, but less developed, and the strong balancing forces (other companies w/ $$$) do not exist yet. You do not see the NFL and NCAA having an exclusive deal with NBC or ESPN, which I know would be financially impossible, but would also be grossly anti-competitive. Same applies to what EA did, no matter how great Madden is, the license agreements by themselves allow for far too many competitive advantages in arguably the most lucrative segment of the market. In a growing industry with developing companies this definitely hurts because it's blatantly predatory nature. I thought there were laws in place to avoid this.

  • reviewninja

    Posted Mar 11, 2009 9:33 pm PT

    is EA really that scared of 2k sports?

    if you want to prove you are better than someone you dont send them away forever so your the best by default you want to prove it man to man (or in this case game to game) and EA is trying to monopolize the industry with such garbage year in and year out with the madden series. you can check the gamespot scores on the maddens 06-09 and they are nothing above 8 which is only "good" not "great" like madden 2005 (they had competition back then mind you)

    after 2013 Madden needs to get off their high horse and end this 8-year disgrace and let 2k or ANYONE else create an NFL game. shoot this is similar to george bush being in order for 8 years and doing an average job at best and was only good when he was senator but once having exclusive rights to do whatever he wanted he failed and was an awful president.

  • sobipalakanis

    Posted Sep 1, 2008 1:32 am PT

    They need to make NFL 2k9 because nfl 2k5 was awesome.

  • sobipalakanis

    Posted Sep 1, 2008 1:32 am PT

    They need to make NFL 2k9 because nfl 2k5 was awesome.

  • BlackCrow2

    Posted Aug 16, 2008 8:48 pm PT

    I miss 2k NFL football.

  • osxgp

    Posted Jul 31, 2008 8:41 pm PT

    skasucks478, the problem is that people like names they can relate to so they can live vicariously through their controller. How many people dream of being a sports star? Plenty. How many people dream that they are their favorite sports star when they play as the character they admire? Probably a lot. I understand the lawsuit, but I don't see it going anywhere. Sports fans tend to buy Madden so they can play as their favorite team. Having a game that doesn't have established teams or players kinda sucks.

  • skasucks478

    Posted Jul 29, 2008 9:37 am PT

    EA is not a "Monopoly" on football games. Yes, their football games may be the only ones with the ability to use NFL team names. That does not make it a monopoly. That is like saying a news network with an exclusive interview with a movie star, sports star, or politician should be sued! Because another network won't be able to get that interview or show it. EA hasn't stopped other games from making football games, since they don't have that right. Other companies just can't use the name of teams and players. Hell, make a game and have Terrell Owens as Tyrell Pwns. All the baseball games since I can remember haven't had Barry Bonds on the Giants roster, but there is a player with his same stats. That never made me angry and wishing to sue him because I couldn't play him. EA also didn't just one day decide, "Hey we'll put the NFL license on our games, so that no other company can use the teams!" They were presented with the opportunity to do so, and they took it. The NFL is a business itself and they want to make money in any market possible. Sorry guys, but that's how it works. This is just business. Just sit back and watch the show. I personally don't support sue-happy people. Yet, the economy is bad, so they might need the money so they don't lose their house, or their parents don't lose their house...since that's probably where they still live.

  • joemailj2

    Posted Jul 5, 2008 1:42 pm PT

    You're all overlooking one little issue...IT WAS THE NFL THAT APPROACHED EA WITH THE IDEA OF AN EXCLUSIVE DEAL! Are these knuckleheads going to sue the NFL too? I don't see them winning this lawsuit. How about EA sues over the exclusive deal that Take Two got the MLB to sign? Oh wait, it's not TRULY exclusive. They just made it so that THIRD PARTY developers, like EA, who made better baseball games to theirs, wouldn't be able to make those games anymore. Guess Take Two were under the impression they could outsell Microsoft(who canned their attempt at making an MLB game) and Sony(whose MLB series had been faltering since the PS2 came out) but they didn't want the competition that EA's excellent MVP game gave them. To those who pray at the shrine of the old 2K football games, I'm sorry your game went away. It WOULD suck if a game I loved and bought annually couldn't be made anymore. That being said, I took the $20 leap and bought 2K5 when it came out(after already buying Madden, of course). Other than more colorful graphics and a better TV-style presentation, I have to say it was inferior to Madden in every other area, including the one that matters most-gameplay. The passing game was especially terrible, where it basically felt like you were catapulting the ball down the field. But it's just one of those Coke vs. Pepsi kind of things, though. Can't say I was sad to see it go. They weren't going to get any more of my money after that game anyway.

  • Oldkingsman

    Posted Jun 26, 2008 3:01 pm PT

    Ok. All of you haters out there, check this out. What if your little game of madden was taken away from you, just up an gone one day? Would you care? I know most madden fans would lose their freaken minds! I think 2k5 was the best football game to date, and at 20$ too! EA could not handle the comp. Be real. They knew they were in for a fight and ran like a scared little bytch!
    Can't beat em buy em. No respect for ea, ever!

  • jspro8152 posted Jun 22, 2008 11:50 am PT (does not meet display criteria. sign in to show)

    jspro8152

    Posted Jun 22, 2008 11:50 am PT (hide)

    The rule falls under different law. They have exclusive rights. It's like 360 making a law suit for having Metal Gear only on the PS3. It's content. On the other hand it doesn't matter because the 2K football games sucked.

  • Tech-head

    Posted Jun 20, 2008 12:56 pm PT

    These guys are heroes.

  • Optiks

    Posted Jun 19, 2008 8:06 am PT

    Anyone who thinks this suit doesn't have merit has no idea what they're talking about.

    Read up on Sections 2 and 7 of the Clayton Antitrust Act of 1914. These two sections, in conjunction with the attempted buyout of Take Two by Electronic Arts are what prompted this lawsuit. It has legs. The timing of its filing is not coincidental.

    If you've ever bought an EA Madden, Arena Football, or NCAA Football game since 2005, and are serious when you say, "Good luck you these guys..." or, "Stick it to EA..." or anything else of the sort, you should contact one of the firms representing the plaintiffs to give the suit some momentum.

    Stop talking for once, and start acting like you want to do something.

  • rrandolph

    Posted Jun 17, 2008 1:24 pm PT

    I don't understand why you guys are saying just don't buy the game or that All-Pro Football came out and we didn't buy it. Well I brought it. It was a great game but like everybody else has said we want to play with the current teams. What is so hard to understand about that? EA has made it so if you want to play as your fav. current star you have to buy their game. That equals NO COMPETITION!!!!!!!! Yes EA is smart, they are very smart, but at the same time being smart doesn't always mean you do ethical things. Usually smart people are the very ones doing unethical things because they are smart and believe they can get away with it. I don't know if this is legal or not I guess we will find out soon, but it is definitely a monopoloy.
    I also find it funny that the year Madden finally looks like it's getting it's act together this comes out. They've have put in more features this year than they have for the last 3 yrs. combined! I believed they were feeling the heat from the community and got their act together. It doesn't seem that this year's Madden will be the same let down the other Maddens have been.

  • Swimmerking33

    Posted Jun 17, 2008 11:19 am PT

    EA is ****

  • BigBoi17

    Posted Jun 17, 2008 8:31 am PT

    And for the ppl who say "Just don't buy the games", shut the hell up...We all don't play WOW and RPG's. I like shooting and sports games, especially sports. I like to play with some of my fav. players that i've seen on t.v. Microsoft has a lot of money, but they don't buy ALL the comp. Stick with WOW....

  • BigBoi17

    Posted Jun 17, 2008 8:20 am PT

    Look, this is what most of the gamers are saying...EA sports is a marketing giant wit a lot of money. A lot of companies can't compete with them money wise. EA won the bid for rights to the NFL license, but who has as much money as EA? Noone. Take Two vs. EA is like Mayweather vs. Iron Mike. Both considered the best in their weightclass, but Mike would just demolish him. What if Bill Gates competed for the bid, and won? We would be stuck with NFL Fever for a few years, and all the EA fans would talk about how unfair it is and that everyone doesn't like NFL Fever. The same applies to Madden and 2K, everyone doesn't like Madden, and the next-gen Maddens' the last few years have sucked. At one point, EA was trying to buy the NBA license too, and NBA Live has sucked major ass the last few years(I really would've been pissed). Back when 2K was out, I didn't discriminate Madden, I usually buy both games. Both have their strengths and weaknesses, but I felt 2K5 was really pushing the envelope. Not too long after that, EA buys the license. The first time it ,wasn't a bid...EA ran some of that "control" game to the NFL, and now they just running with it. NFL can control what goes into the game. Now EA is trying to buy Take-Two, that doesn't seem Ironic to anybody?

  • skayne

    Posted Jun 16, 2008 10:33 pm PT

    lol... sigh. I'm glad a few other aren't as blinded as the majority. I'll reiterate what others said again! The NFL agreed to this as well, where is there heat? EA had the right to do this, it is completely legal. No one is stopping 2k from making football games. If you are TRULY looking for a good game who the **** cares what it says on the jersey, a good game will be a good game. Guess what, you didnt want to buy All-Pro Football 2k8, that is your problem. EA doesnt OWN the football game genre, they own the license to the NFL names, that is it.

    So no you are wrong. No one is forcing you to buy EA football games. Others do exist. EA is just a smart business and is hated because of it, the hate is so terribly unjustified it's crazy.

    @REMLOC
    Please tell me how you would change the game of football in order to release a new game e\/ery year? It's not possible, im honestly surprised they were able to keep the genre ali\/e this long. Like i said before, you can only push this genre so far before it will just be the same old thing with new graphics. This is a reality gamers must accept.

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