Panini America has filed an antitrust lawsuit against Fanatics, alleging monopolistic practices in the trading card industry. Panini claims Fanatics' exclusive licensing deals have created a damaging monopoly across multiple leagues.
"Panini has suffered competitive injury in the Relevant Markets and an injury of the type that the antitrust laws were intended to prevent and is an efficient and appropriate enforcer of the antitrust laws here," the lawsuit states. "Consumers will also suffer antitrust injury from decreased choice, increased prices and loss of quality due to the absence of competition."
Panini America, a prominent trading card manufacturer with licenses from the NBA and NFL, has taken legal action against Fanatics, a rising force in the sports merchandise and trading card industry. In a lawsuit filed on Aug. 7, Panini accuses Fanatics of monopolistic practices that have significantly impacted competition in the trading card market.
Panini's lawsuit claims that Fanatics has deliberately engaged in "anticompetitive conduct" by securing long-term, exclusive licensing agreements with multiple major U.S. professional sports leagues and players associations. These agreements grant Fanatics sole rights to produce and sell trading cards featuring players from these leagues. This, according to Panini, has enabled Fanatics to create a monopoly that extends across various leagues and players associations within the industry.
The lawsuit suggests that obtaining licenses to produce trading cards for players in one major professional sports league can serve as a stepping stone for maintaining a market presence and competing for similar rights in other leagues. Consequently, companies that fail to secure licensing rights for even one league find themselves at a significant disadvantage and are eliminated from the competition.
In response to the allegations, Fanatics issued a statement to ESPN, dismissing Panini's lawsuit as a desperate attempt to shift blame for its own struggles in the market. The statement reads: "Panini's lawsuit is a baseless last-gasp, flailing effort by a company that has lost touch with its consumers, is failing in the marketplace and has tried unsuccessfully for years to sell itself. Panini is trying to blame Fanatics for its own inability to keep pace with what players, fans and even its own employees want."
The trading card industry has experienced rapid changes in recent years, with Fanatics emerging as a significant player following a series of high-profile exclusive licensing deals. These agreements have given Fanatics the rights to produce and sell trading cards featuring players from leagues such as the NBA, NFL and more.
