FuboTV has filed a lawsuit against Disney, Fox, and Warner Bros. Discovery, accusing them of anticompetitive practices in the sports streaming market. The lawsuit, filed in federal court in the Southern District of New York, also names ESPN and Hulu as defendants.
The suit alleges that the companies have engaged in a campaign that has suppressed competition in the U.S. sports-focused streaming market, causing harm to FuboTV and its customers. It claims that the companies’ latest joint venture will continue to suppress competition. Disney, Fox, and Warner Bros. Discovery announced this month that they would collaborate to launch a direct-to-consumer streaming app that would allow customers to pay for access to all of the sports they broadcast across 14 combined linear channels.
FuboTV alleges that the companies have forced it to accept bundling requirements to be able to broadcast certain content and imposed licensing fees above the market rate, which has led to higher prices for consumers. The companies’ behavior, FuboTV said in the lawsuit, was a way to stymie Fubo’s business and growth.
In forming the joint venture, Fox, Disney, and Warner Bros. Discovery will effect a “freeze-out” of streaming competitors and incentivize them to not offer premium content to Fubo and others, FuboTV alleges in the lawsuit.
Fubo asks the court for a permanent injunction to prevent the joint venture from operating and to order the three companies to unwind the joint venture.
The joint venture between the three companies shook up the sports television ecosystem when it was announced. Between them, Disney, Fox, and Warner Bros. Discovery own the rights to NBA and NHL national broadcasts, along with a good number of NFL, MLB, and NCAA Tournament games, among other sports. FuboTV alleges that the companies are violating antitrust laws by combining on one streaming app.
