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The Arena of Fear was a miniaturised environment used by Ebonite as a gladiatorial arena. It was located in a basement below the Ebonite Rooms, in the Rockefeller Center.
Ebonite abducted people (mostly Neanderthals) using time bridges and placed them into the Arena.
He abducted the Tenth Doctor, his companions, with several Neanderthals and Effrid Blunk's group and placed them in the Arena. They managed to fight back against Ebonite, causing him to create an emergency scale change and pull them out of the Arena. Effrid Blunk set out to transport all the Neanderthals left in the Arena to a new home. (COMIC: Arena of Fear)