TikTok and Fanatics Accused of Steering Banned Sports Memorabilia Sellers in Antitrust Complaints

Three sports memorabilia sellers have filed antitrust suits against TikTok and Fanatics in the US District Court for the Central District of California. The complaints allege that TikTok Shop accounts faced strikes for trademark infringement and alleged gambling violations before staff directed the sellers toward exclusive agreements with Fanatics. Two of the breakers signed the deals but say their accounts stayed banned, according to reporting by Gambling Insider.

The filings describe rapid growth followed by sharp revenue drops after enforcement actions. By August 2025, MVP Breaks generated about $475,000 a month selling autographed NFL helmets and card breaks. Its revenue fell to $283,000 the next month before a permanent ban. Quad City Breaks, operated by David Skalsky through QCBripNship LLC, reported making as much as $200,000 per month. Dorm Dudes, founded by Zach Balo, recorded $3.2 million in sales during the fourth quarter of 2024.

Alleged Steering by TikTok Personnel

All three complaints identify Steve Halupka, described as TikTok Shop’s US Sports Collectibles Team Lead, as the primary contact. Texts cited in the filings show Halupka and Nick Bouris directing one seller to contact Ethan Cole to sign with Fanatics. Halupka allegedly attributed the bans to NFL reporting and stated that Fanatics acted on behalf of the league because of its licensed rights. Skalsky received similar indications that signing an exclusive contract with Fanatics would lead to reinstatement.

Dorm Dudes claims it was warned against selling products from rival suppliers and paid an inflated $625 per helmet from Fanatics. It was left with more than $1 million in unsold inventory. MVP Breaks signed the Fanatics Memorabilia Seller Agreement on Nov. 25, 2025, but says the channel was never reinstated. The company later rebuilt under a new entity averaging $300,000 a month, though it has faced repeated shadow bans.

Fanatics Disputes Exclusivity and Current Status

Fanatics has denied that its seller agreement imposes exclusivity on TikTok sales. In a March 23 letter filed in an earlier related case, lawyer Lawrence Buterman of Latham & Watkins stated that nothing in the agreement requires breakers to sell only Fanatics products on the platform. Fanatics also reported no record of a signed agreement with that plaintiff.

TikTok maintains it can enforce its policies against violations, including suspension or termination of accounts. The NFL, TikTok, Fanatics and the plaintiffs’ attorney Jeremy Shafer did not respond to requests for comment. The allegations in the MVP Breaks, Quad City Breaks and Dorm Dudes complaints have not been tested in court. A fifth suit by Bigfoot Sports Breaks was filed on Sept. 11.

These cases turn on whether platform enforcement actions masked anticompetitive steering. Courts will need to examine the sequence of bans, communications and outcomes to determine if the claims hold.

Reporting: Gambling Insider

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