Earlier this month, it was announced that ESPN, FOX and Warner Bros. Discovery would all pair up to create a new streaming platform. Now there’s a wrinkle, FuboTV is suing them for that joint streaming venture according to the Wall Street Journal. The suit alleges that these entities have tried to block the sports streaming business in a campaign spanning several years, harming FuboTV and its consumers for several years.
The lawsuit was filed by FuboTV on Tuesday in the U.S. District Court for the Southern District of New York and requests a jury trial and punitive damages, alleging that the companies have included expensive non-sports channels in bundles with coveted sports networks.
“Each of these companies has consistently engaged in anti-competitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice,” David Gandler, co-founder and chief executive officer of Fubo, said in a statement.
For several years, Fubo has become one of the most premier streaming services available. It gives its customers the feel of having cable TV but without having to worry about a Dish or going through a Cable TV service. The new Sports platform created by the three companies was expected to launch this fall. Because of the combined platform, it appears that FuboTV is being blocked from carrying small bundle of sports-focused channels.
“By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants’ joint venture.”
FuboTV would like to block the joint venture from happening, but if that’s not possible they’d at least like to have some restrictions created. The Justice Department plans to look into the lawsuit and see if any antitrust laws have been violated. It seems likely that a review would be done by the time that the new service is expected to launch.
“Simply put, this sports cartel blocked our playbook for many years and now they are effectively stealing it for themselves,” Gandler said. “Silence is no longer an option. The fact that live sporting events dominated television viewership in 2023, with 97 of the top 100 broadcasts, highlights the critical importance of sports in entertainment and the necessity for its broad dissemination.”
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