Fubo sues Disney, Fox, Warner Bros. Discovery over Antitrust concerns, citing Sports Streaming Cartel
FuboTV, a sports-first live TV streaming platform, has filed an antitrust lawsuit against The Walt Disney Company, FOX Corp., Warner Bros. Discovery, Inc. and their affiliates.
FuboTV, a sports-first live TV streaming platform, has filed an antitrust lawsuit against The Walt Disney Company, FOX Corp., Warner Bros. Discovery, Inc. and their affiliates, alleging that the vertically-integrated media companies have engaged in a years-long campaign to block Fubo's innovative sports-first streaming business.
The lawsuit alleges that the Defendants have used a variety of anti-competitive tactics, including:
- Bundling: Forcing Fubo to carry dozens of expensive non-sports channels that customers do not want in order to license the Defendants' sports channels.
- Charging Fubo higher content licensing rates than other distributors.
- Imposing non-market penetration requirements on Fubo.
- Restricting Fubo from offering compelling streaming products.
Fubo claims that these practices have harmed both Fubo and consumers, and that the Defendants' recently announced joint venture is simply the latest step in their campaign to eliminate competition in the sports-first streaming market.
The joint venture, which is expected to launch later this year, will combine the sports content of the three companies into a single streaming service. Fubo argues that this will give the Defendants an unfair advantage in the market and make it difficult for other streaming services to compete.
Fubo is seeking a variety of relief in its lawsuit, including an injunction against the joint venture and damages from the Defendants.
The lawsuit is the latest in a series of antitrust challenges that have been filed against major media companies in recent years. The Department of Justice is currently investigating the joint venture between Disney and Fox, and there have been calls for Congress to pass legislation that would make it easier to challenge mergers and acquisitions in the media industry.
It is still too early to say what the outcome of the lawsuit will be, but it could have a significant impact on the future of the sports streaming market.
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