In a significant legal development, the U.S. Department of Justice and 16 states have filed court documents supporting FuboTV’s request to block a new sports streaming venture launched by media giants Walt Disney, Fox, and Warner Bros Discovery. The Justice Department, alongside states including New York, California, and Illinois, urged the 2nd U.S. Circuit Court of Appeals to uphold a temporary court order that halts the project, which is called Venu Sports.
FuboTV, a sports-focused live TV streaming service, filed a lawsuit in February, seeking to prevent the launch of Venu Sports. The company argues that the joint venture between Disney, Fox, and Warner Bros will violate U.S. antitrust laws by reducing competition in the sports streaming market and raising prices for consumers. Venu Sports, which aims to combine thousands of live professional and collegiate sporting events into a single app, was set to launch in the fall. However, FuboTV claims that the collaboration among the media giants could harm competition, allowing them to “exercise near-monopolistic control” over sports rights, ultimately stifling potential rivals.
In Tuesday’s court filing, the Justice Department, along with a coalition of states, submitted amicus curiae briefs, effectively supporting FuboTV’s position. These briefs express the view that the merger of such large players in the sports streaming space could reduce competition and limit consumer choice. The Justice Department emphasized that even joint ventures, like the one proposed by Venu, could be unlawful if they harm competition—arguing that just as forcing competitors to cooperate can hurt competition, so too can allowing rivals to join forces.
FuboTV’s argument is gaining traction with regulators, as the support from both the Justice Department and a broad coalition of states strengthens its case. In response to the filings, FuboTV said, “This support reinforces our belief that the appellate court will uphold the preliminary injunction against the defendants.”
Despite the growing momentum for FuboTV’s position, Venu Sports and its media partners, including Disney, Fox, and Warner Bros, have denied the antitrust allegations. They assert that the new platform will enhance consumer choice and provide a more diverse offering of sports content. The media companies argue that they are under no obligation to assist FuboTV in competing with Venu, and they maintain that their joint venture is pro-competitive, offering more options to sports fans.
In September, a brief filed by Florida and five other states sided with the media companies, signaling a split in state-level support for the case.
In August, U.S. District Judge Margaret Garnett issued a preliminary injunction that temporarily blocks the launch of Venu Sports, citing concerns over the potential for the media giants to dominate the sports streaming market. The case now moves to the 2nd U.S. Circuit Court of Appeals, which will review the decision and determine whether the preliminary injunction should be upheld. Legal observers are closely watching the case, which could have significant implications for the future of antitrust law in the digital and media sectors.
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