6
Credit: Inside The MagicU.S. Senator Elizabeth Warren has called upon the Department of Justice to investigate Disney’s deal with FuboTV.
Related: Disney Announces Change in Leadership Ahead of ‘Snow White’ Remake
In a new letter, Senator Elizabeth Warren urges acting Assistant Attorney General of the DOJ’s Antitrust Division Omeed Assefi to “closely scrutinize Disney’s proposed acquisition of FuboTV,” per Variety.
Disney, Fox, and Warner Bros. Discovery announced Venu Sports in February 2024, envisioning the streaming service as a platform designed specifically for sports fans.
Shortly after its announcement, FuboTV, a streaming app also focused on sports, filed a lawsuit against the companies and the proposed Venu Sports service. FuboTV Inc. was founded in 2015, with the company claiming Disney, Fox and Warner Bros.’ Venu Sports streaming service was designed to monopolize the market.
Fubo claimed Venu Sports would “stifle any form of competition, create higher pricing for subscribers, and cheat consumers from deserved choice.”
Related: Multiple Episodes Censored and Banned, Missing for Every Single Disney+ User
Eventually, a judge blocked the launch of Venu, which was intended to be released in the summer or fall of 2024. This led Disney to reach a deal to take 70% ownership of Fubo and combine it with its Hulu service.
Senator Warren claims the Department of Justice needs to investigate the deal, which she says allowed Disney to “circumvent” Fubo’s lawsuit while “gobbling up” one of its competitors.
Warren wrote that Disney’s acquisition of Fubo is “inextricably linked to Disney’s attempt to dominate the sports streaming marketplace through Venu Sports.” Warren’s argument sounds a lot like what Fubo originally had to say regarding Venu Sports, saying that the acquisition decreases competition and increases costs for viewers.
Warren, Senator Bernie Sanders, and Representative Joaquin Castro have all written to the DOJ and the FCC regarding Venu Sport’s possible antitrust violations.
Warren notes that since Disney acquired Hulu in 2019, the price of the streaming service’s Live TV bundle has increased from $45 per month to $82.99.
Warren concluded, “I urge DOJ to continue this work on behalf of viewers by closely scrutinizing this proposed deal and blocking it if it violates antitrust law. As the companies have acknowledged, the sports streaming market is rapidly changing. This uncertainty only underscores the need for antitrust enforcers to carefully assess the potential impacts this proposed deal will have on competition, the broader streaming industry, and millions of sports fans across the country.”
In addition to these developments, The Walt Disney Company is planning to launch a new ESPN streaming platform this year.
Stay tuned here for all Disney news updates.