In a legal triumph for Fubo, a federal judge has blocked the launch of a sports streaming partnership between Disney, Fox and Warner Bros. Discovery.
The situation comes after Fubo, a smaller competitor in the sports streaming space, filed for a temporary ban in late August, shortly before the launch of a collaborative platform and the start of the NFL season.
According to U.S. District Judge Margaret Garnett’s ruling in the preliminary injunction order, “Fubo appears to have a good chance of prevailing in its claims that the formation of the Joint Venture will significantly lessen competition and restrain trade within the relevant market.”
Fubo filed lawsuits against these media giants back in February, alleging that the three were using their sports media licenses to hinder competition and monopolize the market through an allegedly anti-competitive bundling scheme.
In a joint statement on Friday, Disney, Fox Corporation and Warner Bros. Discovery (parent company of WarnerMedia) said they intended to appeal the ruling.
“We strongly disagree with the court’s decision and will appeal. In our view, Fubo’s arguments are flawed in both fact and law, and the court erred in granting Fubo a preliminary injunction. Venu Sports represents a pro-competitive move aimed at expanding consumer choice by serving an audience currently overlooked by existing subscription options,” the trio said.
The Venu Sports service, priced at $42.99 per month, promised consumers access to a wide range of sporting events, drawing on the portfolios of all three companies, including NFL, NBA, MLB, NHL and FIFA World Cup games. It would also provide coverage of NASCAR races, UFC matches and PGA TOUR golf tournaments.
Despite the legal setback, the media giants continue to push forward with their business partnership, with the goal of appealing the preliminary injunction. They believe the formation of Venu Sports will not harm competition, but rather enhance it by offering consumers more varied media options.
