An injunction has been approved by the US Southern District of New York to temporarily block the launch of the new Disney, FOX and Warner Bros Discovery’s sports streaming platform, Venu Sports.
The ruling comes after FuboTV launched a lawsuit against the three major conglomerates arguing that Venu Sports’ creation comes into conflict with US anti-competitive laws by not only controlling an 80% market share of sports content, but also hampering Fubo’s business.
After filing the suit in February – after the announcement of the Venu Sports launch – and following the successful ruling, Fubo intends to move forward with the lawsuit against the joint venture and its affiliates in the antitrust case.
The lawsuit further alleges that the “vertically-integrated media companies have engaged in a years-long campaign to block Fubo’s innovative sports-first streaming business resulting in significant harm to both Fubo and consumers”.
David Gandler, Co-Founder and CEO of Fubo, commented on the lawsuit hearing: “The ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.
“But our fight continues. Fubo has said all along that we seek equal treatment from these media giants, and a level playing field in our industry. The proposed joint venture was only the latest example of anticompetitive practices that The Walt Disney Company, FOX Corp. and Warner Bros.
“Discovery has consistently engaged in for many years. We believe these practices monopolise the market, stifle competition and cheat consumers from deserved choice.”
Venu Sports was expected to launch in September ahead of the new NFL season but it has been the subject of criticism, including between US politicians.
Earlier this month, a letter signed by Senators Bernie Sanders and Elizabeth Warren expressed concerns over Venu Sports’ formation and how it will cause an unfair sports broadcast market.
Fubo has also received support from eight different entities, including DirecTV, Newsmax and more, via a co-authored letter to the Chairs and Ranking Members of the Senate Commerce and Judiciary Committees with the joint venture.
Much of the concern regarding Venu Sports’ launch stems from Disney, FOX and Warner Bros Discovery’s large portfolio of broadcast rights to a plethora of sports competitions.
As it stands, the three broadcasters have licensing agreements with the NBA, NFL, WNBA, MLB, NHL, NASCAR, NCAA college sports, UFC, PGA TOUR Golf, Grand Slam Tennis and the FIFA World Cup.
In an increasingly competitive sports broadcast landscape, where the arrival of sports streaming platforms has only intensified competition, and with sports broadcast rights continually increasing, it is alleged that Venu Sports’s backing from three media conglomerates enables it to control a lionshare of the market.
“A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options. We will continue to fight for fairness and for what’s best for consumers,” added Gandler.
A court date has yet to be confirmed in the progression of the lawsuit.
