NFL, Fanatics fend off antitrust lawsuit alleging online market was monopolized

The NFL has historically been a ripe target for antitrust challenges, but to date, its legal armor has yet to be seriously penetrated.

On Wednesday, a federal judge reinforced that by dismissing with prejudice an antitrust suit filed against the league by a merchandise re-seller, Casey's Distributing, Inc.

Casey alleged the NFL and its official merchandising partner, Fanatics, were illegally cornering the market, unfairly boxing out competitors and purposefully raising prices for consumers. The judge did not buy Casey's argument.

"While plaintiffs have been harmed by the actions of the defendants, the law protects competition, not competitors,” the judge wrote in a 12-page ruling reported by Reuters.

The ruling effectively blesses the NFL's practice of regulating and restricting which retailers are permitted to acquire and resell its merchandise online.

However, the suit isn't entirely dead. The judge permitted Casey's until July 30 to amend its complaint in a way that would sufficiently meet the requirements of legal injury due to a potential monopoly.

Neither side's attorneys released a comment after the ruling.

It's not the only lawsuit the league and Fanatics are attempting to fend off, either.

A Phoenix, Arizona resident filed a complaint alleging Fanatics and each of the NBA, NFL and MLB, plus their respective players associations, conspired with trading card company OneTeam Partners to illegally inflate prices.

Jones wants a judge to grant his case class action status so other defendants affected by the alleged violations since January 1, 2022, may be included.

The suit would be limited to those who purchased "newly issued, fully licensed major U.S. pro league trading cards produced by Fanatics" from a big box store, local trading card shop, online store or similar vendors.

That case will have major hurdles to clear, considering leagues and players associations have long held exclusive rights to license out athletes' names, images and likenesses to specific vendors.

A defeat for the league and Fanatics in either case, while unlikely, would have massive repercussions across the market for fans, though the specific effects are not entirely predictable.