The three entertainment companies had sought to create a new streaming service called Venu Sports, which would launch this fall and charge $42.99 a month for access to networks in their portfolios, including ESPN, Fox Sports and TNT. Fubo said at the time that bundling the three companies’ sports content would put other publishers such as Fubo at an “extreme competitive disadvantage.” DirecTV and Dish sided with Fubo in the case.
The deal also serves as a wake-up call for lawmakers including Sen. Elizabeth Warren (D-MA), Sen. Bernie Sanders (I-VT) and Rep. Joaquin Castro (D-TX) , who recently asked federal law enforcement officials to investigate. They warned that the joint venture could allow the companies to “exercise a monopoly over televised sports events” and effectively require rivals to negotiate with the joint venture “to obtain more than half of the major sports licensing rights while competing with rivals “. These companies offer the best products to broadcast or stream these shows. “
Judge Margaret Garnett of the Southern District of New York said Fubo would likely prevail on the merits, finding the deal violated the Clayton Act, which governs mergers, and granting a preliminary injunction. Block the transaction.
“Simply put, the antitrust issues posed by the joint venture are as follows: If the joint venture is allowed to be established, it will be the best in the market for TV consumers who want to spend their money on multiple live sports channels of their choice. Only people who choose to watch, but not watch extraneous entertainment channels they don’t watch,” Garnett wrote. “The joint venture’s corporate owners—the joint venture defendants—were the same participants who (1) used their longstanding bundling practices to create a void in the pay television market specifically for the live sports joint venture to fill, and (2) Nearly monopolistic control over the existence of different live sports streaming services and the ability to compete with the joint venture.
Fubo co-founder and CEO David Gandler called the decision a win for Fubo and consumers. “This decision will help ensure consumers have access to a more competitive market with multiple sports streaming options,” he said in a statement. “But our fight continues. Fubo has always said , we seek equal treatment from these media giants and a level playing field for our industry. The proposed joint venture is just the latest example of what we believe to be anti-competitive practices by The Walt Disney Company, Fox Company and Warner Bros. Discovery over the years. The practices monopolize the market, stifle competition, and deceive consumers of the choices they deserve.
Venu Sports did not immediately respond to a request for comment.
