NEW YORK —A federal judge has issued a preliminary injunction in an antitrust lawsuit against the Venu Sports streaming services backed by The Walt Disney Company, Fox Corp. and Warner Bros. Discovery that will at least temporarily block the launch of the streaming service.
The owners of Venu has hoped to launch the services around the time of the start of the NFL season. They have said they plan to appeal the decision.
The ruling in from U.S. District Court, Southern District of New York on August 16 came in response to a lawsuit filed by Fubo that said the streaming service raised antitrust concerns that would limit competition and raise prices.
In response, David Gandler, co-founder and CEO, Fubo, commented that “Today’s 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 have consistently engaged in for many years. We believe these practices monopolize the market, stifle competition and cheat consumers from deserved choice.”
“A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options,” he continued. “We will continue to fight for fairness and for what’s best for consumers.”
Fubo had sought to stop the launch of the JV that would have controlled roughly 60%-80% of live broadcast sports content, according to its partners. Fubo said that in the court case it had presented evidence of the JV’s primary effect of limiting competition, removing consumer choice, and ultimately leading to steep price hikes for consumers and boosting profits for the partners.
Fubo said that it also intends to move forward with its lawsuit against the JV partners and their affiliates for antitrust practices. The suit, filed February 20, 2024, 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.
In a joint statement, the backers of the service said: “We respectfully disagree with the court’s ruling and are appealing it. We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction. Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”
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