NEWS: Disney Hit With Lawsuit Over NEW Sports Streaming Service

Disney recently announced plans for a new sports streaming service that would bring multiple media giants together.

Warner Bros. and Fox have both joined Disney (and Disney-owned ESPN) to start a new platform that would allow fans to watch their favorite sports content in one place rather than different apps. It’s caught the attention of the US Department of Justice already, and now, Disney and pals have officially been sued over it.

FuboTV, a sports streaming platform, has filed a lawsuit against Disney, Fox, and Warner Bros. over the new sports streaming service, according to CNBC. ESPN and Hulu (both owned by Disney) are also named as defendants.

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The lawsuit alleges “extreme suppression of competition in the US sports-focused streaming market.” Essentially, Disney, Fox, and Warner Bros. are being accused of creating a monopoly with the new service.

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According to Fubo, Disney, Fox, and Warner Bros. imposed bundling requirements and “significantly above-market licensing fees” on Fubo, which inflated prices for customers.

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This is likely what the DOJ is concerned about as well, though they won’t look over the streaming service in its entirety until the terms of the deal are finalized.

Seth Bloom, an antitrust lawyer with Bloom Strategic Counsel in Washington, stated, “The DOJ would likely look at the competitive implications of that and whether other companies that wish to provide this service will be foreclosed from the market.”

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The lawsuit continues, “These horizontal competitors are colluding to create a [joint venture] that will cause substantial harm to competition and consumers.”

This is a developing case, so be sure to check back here at AllEars for the latest updates as we learn more!