Mouse magic may not be effective against federal antitrust policies after a California-based federal judge partially denied Disney's motion to dismiss the lawsuit brought by 25 subscribers to YouTube TV and DirecTV Stream, which alleged the company of engaging in antitrust practices in the streaming live pay TV (SLPTV) market. 

Bloomberg Law reported that US District Court Judge Edward J. Davila heard the subscribers' complaint, which alleged that Disney's agreements with other streaming live television providers unreasonably restrained trade and led to price increases. 

According to the Hollywood Reporter, the subscribers specified in their complaint that Disney agreed with other streaming services to air Disney-owned ESPN content but barred them from offering a more affordable bundle to subscribers than a bundle that includes ESPN. 

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Disney's Motion Partially Dismissed

In September, Davila partially dismissed the complainants' initial lawsuit with leave to amend. The lawsuit was refiled on Oct. 18, alleging that Disney violated the Sherman Act and several federal and state antitrust laws, which Disney pushed to dismiss. 

The judge said that to assert a Sherman Act violation under the US Supreme Court's "rule of reason" standard, the plaintiffs must plausibly plead a contract among business entities that intentionally harmed commerce for them. 

The subscribers alleged that Disney made anticompetitive agreements with streamers who wanted to offer ESPN, which led to higher subscription prices. The plaintiffs plausibly alleged that Disney made the move so that its rival services could not undercut its platform, Hulu.

However, the court granted Disney's motion to dismiss the subscribers' claims for damages under the Sherman Act, which limited the subscribers' potential relief to an injunction. 

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