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Anticompetitive Antics

Replies:
   Peter Adkison, CEO, Wizards of the Coast
   Skaff Elias, Pro Tour Inventor, Wizards of the Coast
   Dave, about being your own sanctioning body
   Michael A. Turner, with the parallels to Games Workshop
       Dan, discussing the "intellectual property" whine
   Jackwraith, about monolithinc corporations and their inevitable actions
   Frank Bustamante, on WotC's strangehold of the CCGs
   Larry A. Skipper, discusses the problems in finding a solution
   John Stoneham, with an attorney's point of view
   Charles Mousseau, brings a brief analogy to Atari
   Steve Easton, moderating my paranoia
   Matti Nuortio, hoping WotC doesn't arrest him for creating his own sanctioning
   Allen Sorensen, on cheating and shooting the messenger


I read today that the Microsoft vs. Sun case was still raging.

If you've been under a rock for the better part of a year, Sun is charging in court that Microsoft took their Java language, violated their contract with Sun, and added specifications to it to customize it for Windows 95 and 98. Sun created Java so that people wouldn't need Windows 98 or a specific type of computer to run the software created in Java. So they figured it was just another predatory attempt by Microsoft to prevent something as silly and utopian as a Mac/Windows/Unix programming language (Sun's) from wrecking their whole damned monopoly (Microsoft's).

I didn't really want to talk about Microsoft, but how can you talk about anticompetitive behavior without mentioning it? I suppose I could mention Standard Oil, but who the hell in my generation knows anything about the breakup of that?

United States airlines used to be some of the biggest monopolistic bastards. When a new airline would start up, maybe offering service from Boston to New York, the existing airlines on that route, having the luxury of a big budget, would lower their prices to almost nothing and just lose money for a while. The result would be one brand new airline bleeding red and having to cease business on that route. Then the existing airlines would raise their prices again.

That sounds a little familiar to me. Here in our very own world of Magic, it takes all ten fingers and most of your toes to count all the conflicts of interest.

Conflict of Interest #1: The DCI

It doesn't take much imagination to see that when a company creates a game, and that game is composed of cards that have monetary values, and those monetary values are affected by the rarity and the desireability of playing with such a card, and the desireability of cards is based on the tournaments in which they can be played... well, it's just pretty darned obvious that if they create their own tournament organization, they're directly manipulating the value of their product.

And in addition to all this freaky conflict-of-interest stuff, they also have some teeth to bare when it comes to being anti-competitive.

Killing the Competition

Consider the case of the E-League. E-League is an organization dedicated to running Magic tournaments online. It created its own rankings lists, and its own sanctioning body, and uses Apprentice to allow thetice to allow the participants to duel.

Wizards of the Coast actually sent the legal department to E-League to ask them to stop running their private online tournaments. E-League was guilty of nothing more than creating a direct competitor to the DCI. WotC thought it was challenging their intellectual property rights.

As if nobody on this whole planet had ever heard of creating points and rankings for a game before!

Another report came down the wire a couple years ago, that WotC was punishing a guy in Australia who had set up his own local sanctioning body for the fun of the guys in his area. If I remember correctly, the DCI no longer allowed him to run DCI sanctioned tournaments unless he stopped sanctioning his own.

The DCI's Conflicting Mission

The most amazing thing to me is how the DCI has been given the freedom to not only manipulate the starters-and-packs market, but also to manipulate their #1 marketing vehicle: the Pro Tour.

Everyone knows that there's cheating in Magic. Everyone knows that crazy unethical stuff goes on during tournaments, before tournaments, after tournaments, anytime there's a number to be manipulaa number to be manipulated or a point to be had. We had a group of guys from Italy who faked a bunch of tournaments to qualify them for PT Rome. We had a bunch of guys in Malaysia who did the same thing for the World Championships. Tournament reports don't get turned in by TOs who are sympathetic to a friend's poor performance. Results get rewitten by friends of TOs who are allowed to handle sensitive judging paperwork. Rankings get manipulated, period.

The DCI was created with a charter that could not be fulfilled. Much like the FAA, whose job is to both promote American air travel as well as promote flight safety, the DCI's job is to both promote the Pro Tour and sanctioned tournaments while attempting to keep them honest.

"Air travel is safe"

The FAA learned a long time ago that this was impossible. If they raised safety concerns, confidence in air travel eroded. So they did much what the DCI has been prone to do. Pretend there are no problems. It's just easier that way. As long as the public doesn't know the full scope of the problems, their confidence remains high and both the DCI and FAA have done what they can to promote their products. It's a matter of survival. The DCI would not exist without confidence in sanctioned tournaments and the FAA woaments and the FAA would not exist without confidence in air travel.

If you want an historical analogy to what happens when an organization like the FAA has conflicting goals, and resolves their problems in secret, look back to the midair incident suffered by an American Airlines DC-10 over Canada in 1972.

The summary is this: the DC-10 suffered a disastrous decompression during the flight when the rear cargo door blew open and collapsed the cabin floor, damaging many of the control cables of the aircraft. Miraculously, the pilots landed the crippled plane with no injuries. Investigation revealed that a safety flaw in the door latch allowed it to be closed without being securely locked. There was no way to know if it was properly latched.

McDonnell Douglas was worried that such a safety threat would hurt their business. The FAA had the choice to ground all DC-10s until the problem was fixed. This would produce bad press for the DC-10. McDonnell Douglas fought and convinced the FAA to merely issue a service bulletin instead, which would generate almost no public interest and would allow airlines to fix the problem at their own leisure. Because the bulletin generated no public interest, only US DC-10s were repaired. Foreign ones were not.

Then in 1974, a Turkish Airlines DC-10 flying from Paris suffered a similar cargo door blowout. The cabin floor collapsed, destroying all the controls of the airplane. The plane crashed, killing all 345 people.

"There is no cheating on the Pro Tour"

If you don't see the analogy here, just think back to the recent mega-cheating episodes involving forged tournaments and false rankings. To expose such things on a regular basis would erode confidence in the DCI sanctioning procedure and drive people away from Magic. They pretend to the public that nothing is wrong, and meanwhile try to clean up the problems silently. But the problems keep happening, because nobody is informed enough to prevent them, and secret cleanups have no accountability to anyone or anything except the profit margin of the company.

The butt ends of airliners will never be safe as long as the FAA is married to the airline industry. Likewise, tournament Magic will never be honest and the Pro Tour will never be anything other than a slick marketing tool while the DCI is a part of WotC.

Conflict of Interest #2: The Duelist Online

"I'm sure the Duelist Online will be as wildly successful as the pry successful as the printed Duelist." - Jack Stanton

Recently, the Duelist announced that it will cease printing their magazine on paper, and instead attempt to break into the wild and crazy world of internet TCG sites.

I am, obviously, a big fan of all the Magic sites that have sprung up over the years. They've done a good thing for the game, namely, to give the players a forum for their ideas and their concerns.

Perhaps you didn't notice, but the Duelist has always been a magazine devoted to those players that a few of the editors really like. In a circular way, I'd suppose they like those players because those players happen to espouse the same beliefs as the editors. So the Duelist has struck me lately as being a propaganda mag using named players as mouthpieces.

The Duelist reaped its reward for elitism, namely that the magazine did poorly and now has to be resurrected online. Now it will finally be worth what we pay for it.

Dojo Risin'

Sites like the Dojo responded to the community's need. Players and readers wanted timely coverage, from players much like themselves. They wanted different levels of coverage, to accomodate the beginners and the e the beginners and the more experienced players. They wanted theory, but they also wanted concrete examples. They wanted to be heard, too.

Thus, the Dojo and the sister sites prospered. Meanwhile, WotC was busy castrating the Sideboard by ending the early RealAudio broadcasts and later by pursuing suboptimal online event coverage centered around, you guessed it, the names we were already sick and tired of. Then they handed their reporters a beating by cutting their wages to DCI Certified Judge levels. I heard their next plan was to make all their reporters bring their own cameras, laptops, pens, notepads, drinks, consumables, hotel room reservations and round-trip tickets, plus something they could use as a press pass and presumably a bribe to the lady in the press room not to beat them senseless with a crowbar.

Slurp Slurp Slurp

So you're a big corporate giant with gobs of liquid cash. You're being run out of town in a hail of rotten vegetables by some upstart kid who doesn't even have a triple-digit art budget. What do you do?

You do what you've done all along. You wait for somebody to innovate, then you descend upon them and either purchase them or Xerox them. Slurp! If it's a really good day, you run them out of businn them out of business then do whatever they did. That's more cost-effective in the long run. I'm sure that was the plan for Apprentice.

Now The Sideboard has a site which miraculously looks almost exactly like the Dojo, with the exception that they can use Magic art to decorate. I think this proves their intention.

It seems to me that their creation of a competitor site only indicates that they have been waiting like vultures for some gutsy people to open up a market, and now they're going to throw gobs of cash at it until they dominate it. Previously, all independent sites could request and post the results of an event. Now, those sites must link to the Sideboard's page, forcing every previously innovative site to funnel traffic directly to WotC's copycat pages.

The final intent seems to be to undermine the coverage of all the other independent sites. They're doing this by slowly creating and enforcing rules of media coverage that clearly give an advantage to their own magazine, such as restricting access to information.

Independent Sites in Jeopardy

"I can't wait to see Quart and his imaginary trained typing anteater make us all laugh in Quart's Korner on the Duelist Online." - Vince Navarino, aka Quard

The Duelist may be horrible, but it is no fool. The editors there know that most of the best writing comes from the independent writers who have raised themselves by their bootstraps and gained a following. They also know that with the exception of Newwave, almost all of the independent sites are operating off a mythical principle known as "love for the game", and therefore haven't got doodley-squat for finances. So one of the first orders of business for The Duelist was to contact every single independent writer with any talent and following whatsoever and beg them to write for the Duelist instead.

In the meantime, the monopolistic gods at WotC decided to implement a rule restricting the number of people from competing sites. Now only three people from the Dojo may receive press badges. I don't think I need to mention that the Duelist guys have their own press room and "Staff" badges.

So what is going on here?

We've got a company that creates a card game. To market the game, they create their own sanctioning, their own tournaments, their own magazine. Their own magazine extensively covers their own tournaments and their own card game. The DCI reports to WotC. The Duelist reports to WotC. WotC reports to the bottoC reports to the bottom line.

What other games have created their own tournaments and their own official magazines, while aggressively threatening to litigate against everyone else? Why should WotC have an in-house sanctioning body while all others are prohibited? Why should their in-house website have full access to decklists, pairings, rankings and results while the other sites do not?

In the future, it seems inevitable that WotC will step up their harassment of the online sites, restrict their presence at events, limit their access to decklists and results, and try to throw so much money out there that all the other sites can't compete and fall into ruin.

Where's a good antitrust lawyer when you need one?

Cathy Nicoloff   (c_nicoloff@usa.net)
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