FuboTV Files Legal Case Against Disney, Fox, Warner Bros. Over Joint Venture

FuboTV Inc., a US-based streaming television service, has filed a lawsuit against Fox Corp., Warner Bros. Discovery, and The Walt Disney Company. The firm cited antitrust practices as the reason for the complaint.

FuboTV sued the companies after they formed a joint venture for sports streaming. Disney, Fox, and Warner Bros. affiliates were also included in the legal filing.

Alleged Violation of Competition Laws

The TV streaming platform that serves customers in the United States, Spain, and Canada will try to block the joint sports streaming venture of the three major entertainment media corporations. The lawsuit was filed ahead of the planned launch of the JV streaming service, which FuboTV claimed would tear down competition and increase customer subscription rates, as per CNBC.

FuboTV described Disney, Warner Bros., and Fox’s JV in the lawsuit as “extreme suppression of competition in the U.S. sports-focused streaming market.” Moreover, the suit alleged that the joint venture would give the companies immense competitive edge.

When the JV was announced for the first time, it reportedly raised eyebrows in the traditional TV market. Officials of major distributors have started to voice concerns that the new sports streaming will lead to cancellations of cable TV subscriptions. It was also reported that the collaboration was likely to face antitrust challenges.

Major Obstacle for FuboTV’s Growth

FuboTV said Disney, Fox Corp., and Warner Bros. Discovery’s streaming venture will hinder its growth in the sports streaming industry. It argued that the companies have engaged in a pattern of blocking Fubo’s streaming service due to their anti-competitive practices, The Hill reported.

“Each of these companies has consistently engaged in anti-competitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice,” Fubo’s co-founder and chief executive officer, David Gandler, said in a press release. “By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market.”

He added, “Simply put, this sports cartel blocked our playbook for many years and now they are effectively stealing it for themselves. Fubo seeks equal treatment in terms of pricing and all relevant conditions from these media giants to ensure we can compete fairly for the benefit of consumers.”

Photo by: FuboTV Website