Madden NFL 11 News Post

Judge Certifies Class-Action Football Game Pricing Lawsuit Against EA

09:48 PM - December 22, 2010 by Steve_OS

Gamasutra has some new info on the lawsuit.

Quote:


	"A U.S. district judge has certified a class-action anti-trust lawsuit against Electronic Arts that alleges the company illegally inflated prices for its football titles after attaining exclusive rights to league licenses. In a 67-page complaint [PDF], the legal team specifically cites the 2004 pricing battle between Sega and Take-Two's NFL2K5, which retailed for just $19.95, and EA's Madden NFL 2005, which was lowered from a $49.95 asking price to $29.95 in November of that year. A month after this price decrease, EA signed its exclusive licensing deal with the NFL, following with similar deals for the NCAA and Arena Football leagues in later months. The next year's Madden NFL 2006 faced no competition in the football game market at its usual $49.95 price point."

Gamespot chimes in as well.

Quote:


	"We believe EA forced consumers to pay an artificial premium on Madden NFL video games" Berman continued. "We intend to prove that EA could inflate prices on their sports titles because these exclusive licenses restrained trade and competition for interactive sports software."

What do you think happens, out of all this?

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Member Comments

# 141 mestevo @ 04/18/13 01:26 AM

Quote:

Originally Posted by infemous


	they never reduce the price by much any more and with the next generation not going to allow re-sales of games, destroying the rental market and with ZERO competition there is an unfair advantage held by EA. I'd also like to ask anyone who defends EA here why they would want a game to stay expensive?

Except those are all rumors and not likely true since they've been contradicted by other rumors and Sony statements already.

Not touching the straw man, and defer to CM Hooe's explanation above as to it being an 'unfair advantage'.

I'd contend that other companies flat out declining to compete is a bigger advantage than the NFL license at this point. Really isn't the thread for that discussion though. They've been sued over the licensing too - and lost/settled - and the end result is no exclusive AFL or NCAA license while leaving Madden unscathed. Search will find a thread or two about that too.

# 142 reddogmaddogbul @ 04/18/13 08:15 AM

Quote:

Originally Posted by CM Hooe


	The exclusivity agreement between EA and the NFL is not a monopoly situation. The NFL has the right to sell the right to use of its properties to whomever it chooses. If the NFL is agreeable to an exclusive arrangement, so be it. It isn't obligated to allow other companies to license its properties, just as MGM isn't obligated to license the James Bond franchise to any company but Activision-Blizzard. A court can't dictate how the NFL manages its own intellectual property rights. Further, the situation is not a monopoly because the agreement doesn't stop other companies from producing video games or even realistic American football video games; the opportunity for direct competition still exists. Indeed, at least four full-scale console releases have been published since the agreement happened (Blitz: The League, Blitz: The League 2, All Pro Football 2K8, Backbreaker). Even without full-scale football video games in the market, EA Sports titles still face competition from other sports games - NBA 2K, The Show, etc. - and also non-sports games - Halo, Call Of Duty, etc. - for consumer attention. Just because a situation is unfavorable to consumers (which the exclusivity license is, you won't get an argument from me on that point) doesn't make it against the law.

I agree with howboutdat in this post

Quote:


	Now it claims the reason for the suit is basically due to the contract EA has with the NFL, basically making a monopoly , and allowing them to raise price. While they do have a monopoly , which is supposed to be illegal, this lawsuit while stating that as the problem, does absolutely NOTHING TO FIX IT. If the lawsuits agenda was to make the contract between EA and NFL be deemed illegal and would make them stop doing it , then id be all for it because that is what needs to happen. But just trying to take a few bucks from them , to me , is just being just like the greedy aholes people are saying they dislike(numer 1 disliked company in the US , 2 YEARS RUNNING).

Could you clarify CM Hooe why is it that NCAA football license can't be renewed until 5 years after 2014 drops?And since it's not a monopoly like you say it is;why punish NCAA and not Madden for 5 years?

Sounds like money hungry Aholes who exploited the system as howboutthat allotted to.Aint this the

way?

# 143 howboutdat @ 04/18/13 08:30 AM

Quote:

Originally Posted by reddogmaddogbul


	I agree with howboutdat in this post Could you clarify CM Hooe why is it that NCAA football license can't be renewed until 5 years after 2014 drops?And since it's not a monopoly like you say it is;why punish NCAA and not Madden for 5 years? Sounds like money hungry Aholes who exploited the system as howboutthat allotted to.Aint this the way?

indeed , its a monopoly. call it what they like. Sure other companies can make a "football game" BUT NOT an NFL football game, with the players that so many fans want to play with. Therefore those "other" football games, dont really sell all that well , because the fan base of players want to play with their favorite NFL teams and players. Its a monopoly on that very thing. Also interesting point above. After this next ncaa EA is not allowed to renew its license for 5 years.... i wonder why that had to be court ordered? maybe because they thought EA was being totaly fair? i mean other companies coulda made another football game,like maybe high school football, or backyard football, im sure those would really sell well too. The ONLY reason Madden sells as well as it does is because anyone who wants to play with NFL teams and players HAS NO OTHER OPTION.Its definitely not due to the awesome gameplay . Not because its just a great game. They are only banking off the teams names and players names. That is it.Which is why EA can put out a half done product each year and still sell so many because people want to play with NFL teams and players, and they keep falsely thinking EA for once might step up and make the game right and finished for once only to be let down time and time again. By the way , when you only have 1 option , 1 place you can get such a product, its a monopoly.
- from wikipedia: A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity . (THIS IS MY FAVORITE PART, TELL ME THIS ISNT EA) Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods.

I mean , smells like a monopoly to me. . . . . . . . . .

# 144 CM Hooe @ 04/18/13 08:43 AM

Quote:

Originally Posted by reddogmaddogbul


	I agree with howboutdat in this post

That's fine, but you both are wrong. I don't know how to put that gently.

If it were a monopoly, someone would have sued EA regarding the exclusivity license specifically causing a monopoly by now. However, the law is on EA's side.

Quote:


	Could you clarify CM Hooe why is it that NCAA football license can't be renewed until 5 years after 2014 drops?And since it's not a monopoly like you say it is;why punish NCAA and not Madden for 5 years? Sounds like money hungry Aholes who exploited the system as howboutthat allotted to.Aint this the way?

EA agreed to not pursue an exclusive NCAA Football license as terms of the settlement of this lawsuit (prior to it reaching a full-blown trial; that is, this ruling was not handed down by the court).

This lawsuit was about controlling the price of goods in the marketplace. The jist of the argument of the plaintiffs in this lawsuit is that, after EA eliminated the most direct competition from the football gaming marketplace in 2004 which forced prices of goods downward, they deliberately set prices at the $50 and $60 price point.

I don't necessarily agree with that argument because EA Sports video games aren't the only video games that exist; every other video game still retails at $60 ($50 last-gen) upon release. However, I'm not a lawyer. Regardless, EA agreed to settle this lawsuit without going through a full civil trial. A settlement is not necessarily an admission of liability on EA's behalf.

# 145 cgalligan @ 04/18/13 08:55 AM

I feel like its a monopoly because it prevents other game developers from making NFL Football Games... However, if it hasn't been brought up by now, in the courts, then clearly I'm not understanding what exactly a monopoly is... What the above poster said makes perfect sense, about the NFL being allowed to see their rights how they see fit...

As much as I dislike EA and this whole contract with the NFL, over the years as I've researched and started to understand exactly how the Exclusive I'm more mad at the NFL for making the License Exclusive in the first place... I'm 100% certain, that if EA hadn't purchased the License, someone else would have, and we would all be hating them now because their product would have had the same difficulties without having to worry direct about competition...

The NFL and EA are both to blame in this whole mess...

# 146 cgalligan @ 04/18/13 08:57 AM

Quote:

Originally Posted by infemous


	they never reduce the price by much any more and with the next generation not going to allow re-sales of games, destroying the rental market and with ZERO competition there is an unfair advantage held by EA. I'd also like to ask anyone who defends EA here why they would want a game to stay expensive?

*sorry this is off topic*

Next Gen games wont be able to be resold?

# 147 CM Hooe @ 04/18/13 09:06 AM

http://en.wikipedia.org/wiki/United_...ft_Corporation

This sheds light as to what a monopoly actually looks like in the United States. Microsoft was found liable for monopolistic behavior with regard to anti-competitive behavior surrounding Internet Explorer, including working directly with hardware manufacturers to optimize hardware for their software, bundling IE with the dominant operating system of the day (Windows), and allegedly manipulated their Windows APIs to favor Internet Explorer with regard to application performance.

That is, it wasn't enough that MS dominated market share via distribution on damn near every PC to determine that they held a monopoly.

# 148 CM Hooe @ 04/18/13 09:07 AM

Quote:

Originally Posted by cgalligan


	sorry this is off topic Next Gen games wont be able to be resold?

This was a rumor which emerged last year which has been debunked.

For more information, go to the Console / Portable Talk forum.

# 149 cgalligan @ 04/18/13 09:28 AM

Quote:

Originally Posted by CM Hooe


	This was a rumor which emerged last year which has been debunked. For more information, go to the Console / Portable Talk forum.

Thanks. 10 char

# 150 Swamp Swagger @ 04/18/13 10:48 AM

Think 2K will ever make football games again? Or is EA have to much money to ever let it go

# 151 TreFacTor @ 04/18/13 02:10 PM

Anyone else having an issue with the submit button on the site? I'm pretty sure I got in on this when it hit the ground running so that my be the cause of me not being able to re submit a claim...just wondering.

# 152 infemous @ 04/21/13 03:56 AM

Quote:

Originally Posted by mestevo


	Except those are all rumors and not likely true since they've been contradicted by other rumors and Sony statements already. Not touching the straw man, and defer to CM Hooe's explanation above as to it being an 'unfair advantage'. I'd contend that other companies flat out declining to compete is a bigger advantage than the NFL license at this point. Really isn't the thread for that discussion though. They've been sued over the licensing too - and lost/settled - and the end result is no exclusive AFL or NCAA license while leaving Madden unscathed. Search will find a thread or two about that too.

We'll see because alot of discussion at the announcement of the PS3 was centred around the downloading of games as opposed to physically buying them. It was all about making everything 'immediate' but it also is convenient for the game developers. We won't know until the machines get released or even further along down the line. Remember that game developers, including EA are also trying to kill off the re-sale market through the use of 'online passes' and various versions of it. You can't just say its rumours when the entire industry seems to be trending that way. No its not confirmed or a dead cert, but to reject it is as a valid concern is ignorance.

With these initiatives EA holds an 'unfair advantage' over their customers. The game is only valid for one year yet there is a possibility of there being no outlet for audiences to acquire the game for (noticeably) lower than the initial release price.

The unfair advantage is not a straw man because people buy Madden for the NFL license, which EA has exclusively. Irrespective of the fact that the NFL reserves the right to sell their rights to whoever they want, it does not deny the 'unfair advantage' EA has over not only their competition, but additionally, the fans of the series. We as customers do not see the same price drop that we used to see in Madden titles, or tbh other games titles as quickly as we used to.

I didn't say that it is against the law, I just implied (and am saying now) that these business practices SHOULD be against the law.

My final line however was what inspired me to comment in the first place, which was seeing people defending EA's pricing policies. That defies my understanding because who'd want to pay more for something, when they could pay less? ESPECIALLY with such a flawed product as Madden (although do not take that as bashing because I still enjoy the game, I just recognise that it is far from what it could be)

# 153 murph17 @ 08/19/13 10:57 AM

case is over, appeal denied. checks going out soon. woot!

Pecover v. Electronic Arts Inc.
http://www.easportslitigation.com/

Quote:


	8/16/2013 UPDATE: The settlement was approved by the Court on May 30, 2013. An appeal was filed on June 28. On August 16, 2013 the appeal was dismissed. Settlement checks will be distributed soon.

# 154 Gorilla Glass @ 08/19/13 02:47 PM

Quote:

Originally Posted by murph17


	case is over, appeal denied. checks going out soon. woot! Pecover v. Electronic Arts Inc. http://www.easportslitigation.com/

Does anybody know if we need to provide receipts? Who keeps those past a year?

# 155 mestevo @ 08/19/13 03:13 PM

Probably not required, but if requested part of the slipcover is probably sufficient.

Not expecting them to require it though.

Sent from my SCH-I605 using Tapatalk 2

# 156 murph17 @ 08/19/13 04:46 PM

Quote:

Originally Posted by Gorilla Glass


	Does anybody know if we need to provide receipts? Who keeps those past a year?

they won't. you would have to be very blatantly trying to pull a fast one for them to even think twice about cutting your check.

very blatantly = claiming the max number of copies for every single qualifying title

# 157 TheBinnzer @ 08/21/13 10:23 AM

The bottom line is that if you played online with any of these games, there will be a record of you having done so in their databases.

If they expect me to provide proof that I bought all games between now and then, they have it already, i think.

But..the lawsuit excludes those who bought the game used; how do they prove who bought the game new vs used I wonder?

I did not seek this lawsuit out to begin with. i was contacted via email that I may qualify. I assume that they got my email because I registered my product by playing online.

# 158 hanzsomehanz @ 08/21/13 12:03 PM

Why does this settlement only validate Americanos?

Sent from my SGH-I727R using Tapatalk 4

# 159 TheBinnzer @ 08/21/13 12:26 PM

If you have claim ID, you should know and have it already. I have one, I am just not sure when I will get a check and how much it will be for.

Send an email to them. they usually get back pretty quick

They ask for your address or your claim ID number

# 160 XtremeDunkz @ 11/04/13 04:13 PM

So I just got my check from this today. $234.74

A very unexpected surprise, but i'll take it!

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