FuboTV accuses Disney, Fox and Warner Bros. in antitrust practices for collaborative streaming service

FuboTV, a streaming platform dedicated to live sports, has filed an antitrust suit against Disney, Fox and Warner Bros. Discovery, accusing the companies of mounting a “year-long campaign” to hinder their business. The company’s lawsuit comes soon Disney-owned ESPN, Fox and Warner Bros. Discovery has announced that they are launching a sports streaming service in the fall of 2024 that will give subscribers access to sports events from the networks they own. FuboTV’s complaint alleges that the companies are stealing its book and that launching their joint venture would destroy competition and lead to price inflation for consumers.

FuboTV further claims that the launch of the defendants’ streaming service is only the “latest coordinated step” in their “campaign to eliminate competition in the premier sports streaming market” and in their efforts to block their business. The streaming service said the defendants charge it content licensing rates that are 30 to 50 percent higher than the rates they charge other distributors. They are also said to be forcing FuboTV to bundle “dozens of expensive non-sports channels” that “customers don’t want” with their sports offerings as a condition of licensing their content. All of this increases the costs that FuboTV has to pass on to its customers, the company explained.

FuboTV also claims that the companies in question have prevented it from offering streaming products that subscribers would want, including content available on Hulu. In addition, the defendants allegedly impose a limit on how many subscribers can purchase their content package, ensuring that FuboTV cannot break into the market.

“Each of these companies has consistently engaged in anti-competitive practices designed to monopolize the market, stifle any form of competition, create higher prices for subscribers and cheat consumers of the choice they deserve,” said the CEO of FuboTV’s David Gandler in a statement. “By coming together to exclusively retain the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block new competitors from entering the market.” This strategy ensures that consumers who desire a dedicated range of sports channels are left with no alternative but to subscribe to the defendants’ joint venture.”

Engadget contacted all three defendants: ESPN declined to comment, while Fox and Warner Bros. Discovery have not yet contacted us. FuboTV is asking the court to enjoin the launch of the joint venture or impose restrictions, such as economic parity of license terms, on the defendants.