Live TV streaming platform FuboTV has filed a civil lawsuit against Disney, Fox and Warner Bros. Discovery, alleging that the media companies have engaged in anti-competitive conduct for years and continue to do so through their integrated sports streaming app. claimed to be doing so. It is expected to go on sale later this year, according to court documents.
The lawsuit, filed in federal court in the Southern District of New York, also names ESPN and Hulu as defendants.
In the lawsuit, FuboTV, which has been in business since 2015, claims that the two companies are participating in a campaign to stifle competition in the U.S. sports-focused streaming market, and that FuboTV, its customers, and the companies' latest joint They claim it has caused damage to their business. Venture companies will continue to suppress competition. Disney, Fox and Warner Bros. Discovery announced this month that they are partnering to launch a direct-to-consumer streaming app that will allow customers to pay for access to all sports broadcast on a combination of 14 linear channels. did.
“Defendants chose collusion instead of competition, giving their own cartel and no one else the ability to market and sell live sports-centric packages,” FuboTV alleges in the lawsuit. “The companies have thus ensured that the combined entity will face no substantial competition. They are currently harming, and threatening to do further harm to, U.S. competition and consumers.”
FuboTV says the companies are forcing them to accept bundling requirements and charging license fees above market rates to broadcast certain content, leading to higher prices for consumers. There is. FuboTV said in its lawsuit that the companies' actions hindered Fubo's business and growth.
In forming the joint venture, Fox, Disney and Warner Bros. Discovery will affect the “freeze-out” of streaming competitors and incentivize them not to provide premium content to FuboTV, FuboTV says in its lawsuit. It is claimed that.
Fubo is seeking a permanent injunction from the court to prevent the joint venture from operating and order the three companies to dissolve the joint venture.
“For decades, these defendants have used their iron grip on sports content to extract billions of dollars in ultra-competitive profits from distributors and consumers,” the complaint states. has been done. “Defendants have earned many of these profits by 'bundling' commercially important sports content with other less desirable content, and in order for sports fans to receive Defendants' sports content. , forcing you to purchase channels you don't want or need. ”
The joint venture between the three companies sent shockwaves through the sports television ecosystem when it was announced. Disney, Fox and Warner Bros. Discovery own the rights to national broadcasts of the NBA and NHL, as well as numerous NFL, MLB and NCAA tournament games and other sports. FuboTV claims the two companies are violating antitrust laws by combining into one streaming app.
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“[The joint venture]will significantly reduce and reduce competition by facilitating horizontal collusion between Defendants who collectively control access to most commercially significant sports content in the United States.” says the complaint. “This joint venture provides Defendants with an opportunity and incentive to align their interests and collude in licensing essential sports content to third-party distributors.
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