NEWS: Judge Denies Disney’s Request To Have ESPN, Hulu Lawsuit Thrown Out

Back in November 2022, we learned that YouTube TV subscribers had brought a class-action lawsuit against Disney.

The subscribers allege that Disney’s business deals have inflated the cost of streaming subscriptions. Later, in January 2023, Disney filed a motion to dismiss the lawsuit, and now, we have another update.

At the end of 2022, YouTube TV subscribers filed two antitrust lawsuits over its Live TV streaming. The plaintiffs claim that “the company’s business deals with competitors have inflated the amount consumers pay for streaming live TV services.” A few months later, Disney filed a motion to dismiss the suit — but it doesn’t appear as though the House of Mouse has won that battle.

According to Deadline, Judge Edward J. Davila denied Disney’s request, saying, “The Court once again finds Plaintiffs’ allegations sufficient to plead Disney’s market power in a well-defined SLPTV market in the United States.” Disney’s attorneys have argued that the plaintiffs who filed the suits “misconstrue basic antitrust and economic concepts.”

In Disney’s motion to dismiss, they claim the suit fails to show  “a relevant antitrust market in which competition was harmed” and that “the antitrust laws exist to protect competition, not individuals.”

Judge Davila will allow the case to move forward — albeit in a reduced form, cutting any attempt at damages from the suit altogether. Instead, Disney faces the possibility of injunctions that could stop them from engaging in antitrust violations in the future.

The antitrust lawsuit was filed earlier in late 2022 U.S. District Court in San Francisco, and alleges that Disney controlling both ESPN and Hulu has allowed the company to “inflate prices marketwide by raising the prices of its own products” and also “set a price floor.”

“Because Plaintiffs have specifically alleged that the terms of the MFN provision permit Disney to set a price floor and raise its competitors’ ESPN prices (which translate to the subscription package prices) whenever it raises Hulu’s prices, the Court finds Plaintiffs’ allegations sufficient to plead Disney’s market power in a well-defined SLPTV market in the United States,” Judge Davila said in his ruling.

This isn’t the only antitrust lawsuit Disney is currently facing. 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.

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.

As of now, Disney hasn’t commented on the Judge’s latest ruling. We’ll continue to keep an eye out for updates on this situation, so stay tuned to AllEars for more.

Bob Iger Says Disney Is Placing ‘Pretty Big Bets’ on Theme Park Expansions

Are you a Disney+ subscriber? Tell us in the comments.

Post a Comment