In a legal triumph for Fubo, a federal judge halts the launch of the sports streaming collaboration between Disney, Fox, and Warner Bros. Discovery.
The situation arises after Fubo, a smaller competitor in the sports streaming sector, petitioned for a provisional block in late August, right before the launch of a collaborative platform and the initiation of the NFL season.
According to U.S. District Judge Margaret Garnett's judgement in the preliminary injunction order, "It seems that Fubo has a good chance of prevailing in its allegations that the formation of the Joint Venture will significantly decrease competition and restrict trade within the relevant market."
Fubo initiated legal action against these media giants back in February, asserting that the three were utilizing their sports media licenses to thwart rivalries and monopolize the market through an allegedly anticompetitive bundle.
In a collective statement on Friday, Disney, Fox Corporation, and Warner Bros. Discovery (WarnerMedia's parent company) declared their intention to challenge the verdict.
"We strongly disagree with the court's decision and will be appealing it. In our view, Fubo's arguments are flawed in both fact and law, and the court has erred in granting Fubo a preliminary injunction. Venu Sports represents a pro-competitive move aimed at expanding consumer choices by catering to a demographic of viewers currently underserved by existing subscription options," the trio stated.
The Venu Sports service, priced at $42.99 per month, promised consumers access to a variety of sporting events, drawing from the portfolios of all three companies, including NFL, NBA, MLB, NHL, and FIFA World Cup matches. Additionally, it would provide coverage for NASCAR races, UFC matches, and PGA TOUR Golf tournaments.
Despite the legal setback, the media giants continue to push forward with their business partnership, aiming to appeal the preliminary injunction. They believe that the formation of Venu Sports will not harm competition, but rather enhance it by offering more diverse media options to consumers.
