The war of words between WWE and Major League Wrestling continues in the latest court filings by WWE, who are looking to have the case dismissed.
The latest response from WWE regarding MLW’s lawsuit against them has been obtained by Mike Johnson of PWInsider; WWE asserts that MLWs’ claims of monopolization are “unviable” as the company has failed to meet the requisite elements of the claim, such as monopoly power and anticompetitive conduct. In the filing, WWE also states that MLW’s allegation that the company has interfered with their contract negotiations are not backed by facts.
Some of the highlights of the 28-page document response are included down below.
WWE’s argument to Major League Wrestling’s claim of monopolization is as follows:
“First, MLW’s monopolization claim(s) remain unviable. MLW has not and cannot plead the core elements of a monopolization claim: (1) a relevant product market, (2) monopoly power, (3) anticompetitive conduct, and (4) antitrust injury. Confronted with WWE’s motion to dismiss and the deficiencies of its own Complaint, MLW now tries to reframe its Complaint through its opposition (Opp.), asserting that WWE’s exclusive contracts with Fox and NBCUniversal foreclose MLW from the “market” by cutting off its access to key distributors or purchasers. However, MLW’s complaint is silent on (1) WWE’s use of exclusive contracts, (2) whether these exclusive contracts substantially foreclose the proposed market, or (3) the existence of “key” networks, cable, and streaming services that control access to this proposed marketplace.
Second, MLW’s various state law claims should be dismissed for lack of diversity and/or supplemental jurisdiction. Even if this Court could continue to exercise jurisdiction, MLW fails to respond to WWE’s arguments in its moving brief. The intentional interference claims are not plausibly pled, and MLW has no standing to bring a UCL claim.”
WWE once again argued that Major League Wrestling has failed to prove that WWE has a monopoly on the professional wrestling industry. Stating:
“There is no allegation, nor could there be, that all networks, cable, and streaming services derive 83%, 8.3%, or 0.83% of their revenue from WWE content. NBCUniversal and Fox, combined, only purchase three WWE television programs out of the presumably hundreds (if not thousands) of programs that their networks air per week. Critically, it is never alleged that, if the WWE were to withhold its product, the television networks would stop broadcasting or “go dark.” Instead, and logically, they would fill that “dark time” with alternative programming over whose production WWE has no control. The notion that WWE has monopoly power over some of the largest companies on earth is an economic absurdity, is not supported by allegations in the Complaint, and could never be supported by good faith allegations.”
WWE also utilized the recent success of All Elite Wrestling to prove that they aren’t a monopoly in the professional wrestling industry. Stating:
“MLW incorrectly argues that costs to compete are a barrier to entry. MLW failed to allege what these various costs are or how they are relevant to a company’s ability to sell broadcast rights. As has become routine, MLW again attempts to introduce new, unpled facts, this time by attaching WWE’s 2021 10-K to its Opposition. MLW in no way included or referenced this document in its Complaint (as it could have done), and the Court should strike its improper introduction. However, even this improper document provides MLW no safe harbor, as MLW has not alleged facts demonstrating that WWE’s costs reflect “additional long-run costs” that a nascent competitor must pay to enter this supposed market. Moreover, one of the primary ways a new competitor takes market share is by developing cheaper, more efficient cost structures. MLW alleges that it generates “cutting-edge professional wrestling content” and competes with WWE, presumably with far fewer expenses – surely its costs better represent those faced by a new, innovative competitor than do WWE’s. Perhaps most importantly, MLW alleges that other competitors have successfully entered the market. MLW cannot now distance itself from its own allegations of successful entry. Specifically, the Complaint alleged that MLW and AEW both entered the market and produced programming that networks, cable, and streaming services could purchase.
Further, the Complaint alleged that AEW, within a year of entering, sold its broadcast rights for tens of millions of dollars and captured an average 2020 rating of 0.344 compared to WWE Raw’s 0.5075 in the key 18-to-49 demographic. MLW’s own Complaint thus depicts a market with aggressive players vying for market share and finding successes. These allegations alone undercut MLW’s conclusory allegations of monopoly power.”
If this matter ends up going to court, the hearings are currently set for September 29.
READ MORE: Court Bauer: MLW Has ‘Exceptional Evidence’ Proving Tortious Interference By WWE
What are your thoughts on WWE’s latest response to Major League Wrestling’s lawsuit? Who do you think is going to win this case? Let us know your thoughts by sounding off in the comments section below.
