FuboTV Sues Walt Disney, Fox And Warner Bros For $1 Billion To Halt Sports Streaming Platform

FuboTV has filed a lawsuit to prevent Walt Disney, Fox and Warner Bros. from launching a streaming service in the fall, citing anticompetitive behaviour. 

According to reports, the lawsuit was issued in a New York Federal court on February 20. FuboTV alleges the defendants planned on providing sports content from the following companies under one umbrella: ESPN, TNT, FOX, FS1, FS2 and others.

The complainant claims it will create an “iron grip on sports content to extract billions of dollars in supra-competitive profits,” thus breaking antitrust laws. It could lead to customers paying 50 percent higher than other distributors for the same content. FuboTV has demanded a billion in damages for the costs that will follow and those that are passed to the customers.

FuboTV claims it has tried for years to offer a sports-only streaming service but has been prevented from doing so because of ESPN, Fox and Warner Bros. Discovery has imposed bundling requirements on FuboTV which it says forces “Fubo to spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need,” making the lawsuit vital for its future.

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“For decades, Defendants have leveraged their iron grip on sports content to extract billions of dollars in supra-competitive profits from distributors and consumers. Defendants earned many of these profits by ‘bundling’ their commercially critical sports content with other, less desirable content — forcing sports fans to purchase channels they did not want,” FuboTV Inc. stated 

“Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice. By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market,” David Gandler (Fubo Co-Founder and CEO) said

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