Sports streaming platform FuboTV has filed a lawsuit against Disney, Fox, and Warner Bros. Discovery over their sports streaming joint venture.
According to a copy of the lawsuit obtained by CNBC, FuboTV accused the three media giants of "extreme suppression of competition in the U.S. sports-focused streaming market."
FuboTV vs. Disney, Fox, Warner Bros. Discovery
The joint venture, which will be owned equally by the three companies, aims to combine content from Disney's ESPN and ABC networks, Fox, and Warner channels, including TNT and TBS, to offer consumers a comprehensive platform for accessing live sports content like never before.
The platform is set to roll out this fall, but some questions about its pricing and structure remain around. However, FuboTV strongly opposed its arrival, saying that "these horizontal competitors are colluding to create a JV [joint venture] that will cause substantial harm to competition and consumers."
Disney-owned ESPN and Hulu were also named defendants in the lawsuit filed in the Southern District of New York. According to the Associated Press, FuboTV is seeking a jury trial.
FuboTV Accuses Disney, Fox, Warner Bros., ESPN, Hulu of Engaging in Anti-Competitive Practices
In a statement, David Gandler, co-founder and CEO of FuboTV, accused the defendants of consistently engaging 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."
"Simply put, this sports cartel blocked our playbook for many years, and now they are effectively stealing it for themselves," Gandler added.
FuboTV, founded in 2015, not only wants the proposed joint venture to be stopped but is also reportedly seeking cash damages. The AP also reported that the company is seeking restrictions on the venture if the court does not rule to do either so that competition remains in the marketplace.
Join the Conversation