Antitrust Lawsuit: TikTok and Fanatics Accused of Coercing Independent Sellers

A legal battle is unfolding in the United States that threatens the relationship between social media platforms and the lucrative sports memorabilia market. Brian Gualdiero, owner of Florida-based Bigfoot Sports Breaks, has filed an antitrust lawsuit against TikTok and sports apparel giant Fanatics. The accusation is serious: TikTok is allegedly banning independent sellers to force them into exclusive contracts with Fanatics. Gualdiero claims his TikTok account was permanently banned in September 2025, after which a platform representative told him that a deal with Fanatics was the only way back.

The lawsuit, filed September 17 in the U.S. District Court for the Central District of California, includes 11 counts, including violations of antitrust laws. This is not the first time such allegations have surfaced. Bigfoot is the fifth seller since October 2025 to take similar accusations to court. At the heart of the matter are so-called breaks, where customers buy spots in a livestream to bid on the contents of sealed boxes, a format that often resembles gambling elements.

Numbers and facts

The court documents cite specific messages Gualdiero allegedly exchanged with a TikTok representative via the Lark app. When asked if a Fanatics contract was the only way to unban the account, the representative reportedly replied with a simple correct. A distributor named Relics Ventures, identifying as Fanatics' partner for TikTok, then offered goods. A specific offer for NFL helmets was priced at $675 each with a minimum order of 72 units. This would have required an investment of $48,600 from the seller to resume business operations.

Fanatics, on the other hand, denies any coercion. A spokesperson for the company told the trade press that the lawsuit was meritless and noted that Bigfoot had already been banned for NFL intellectual property violations before any talk of exclusivity occurred. The seller, however, denies ever selling altered products.

„Fanatics does not force anyone to do business with us. Our focus is on providing fans with authentic, licensed products, and we won’t be deterred by these lawsuits." - Spokesperson, Fanatics

Background

The conflict highlights the market power of Fanatics, which holds a dominant position through extensive licensing agreements with professional leagues like the NFL. Independent sellers, who often grew large through livestreams on TikTok, feel squeezed by these cooperations. The lawsuit alleges that TikTok and Fanatics are working together to eliminate competition and control prices. Interestingly, the contract offered by Fanatics includes a clause stating that Fanatics makes no representations regarding TikTok's actions. This directly contradicts the statements the TikTok representative allegedly made to the seller.

Why it matters for German players

Although this involves the US market, the parallels to the German State Treaty on Gambling 2021 (GlüStV 2021) are undeniable. In Germany, breaking or opening surprise boxes (loot boxes) is closely monitored because the random component for payment carries addiction potential. Anyone looking for legal gambling in Germany should exclusively use providers with a license from the Gemeinsame Glücksspielbehörde der Länder (GGL). These casinos are listed on the official whitelist.

For German users, regulation means safety: strict bet limits of 1 Euro per spin on virtual slots and a monthly cross-provider deposit limit of 1,000 Euro, monitored via the LUGAS system, apply. Platforms like TikTok are also subject to stricter guidelines in the EU through the Digital Services Act, which makes arbitrary bans or anti-competitive practices more difficult, although this specific collector context has not yet been fully litigated compared to the US.

What it means for GGL-licensed casinos

German casinos with a GGL license must strictly adhere to advertising bans intended to protect minors. Since TikTok has an extremely young target audience, advertising for real-money gambling is nearly impossible there in Germany. The allegations against Fanatics show how quickly gray areas like memorabilia breaking can come under judicial fire when exploited commercially. Licensed German providers avoid such dubious tie-in deals to avoid risking their concession. The case underscores that transparency in licensing rights and platform rules is essential to avoid legal consequences.