U.S. Senator Elizabeth Warren has called upon the Department of Justice (DOJ) to investigate Disney’s deal with Fubo.
Sen. Warren Writes to DOJ About Disney-Fubo Deal
In a letter shared by Variety, Senator Warren urges Omeed Assefi, the acting Assistant Attorney General of the DOJ’s Antitrust Division, to “closely scrutinize Disney’s proposed acquisition of FuboTV.”
Fubo filed a lawsuit against Disney, Fox, and Warner Bros. Discovery in February 2024 over the trio’s proposed Venu Sports streaming service. Fubo claimed Venu Sports violated antitrust law and encroached on their “sports-first” market. After a judge blocked Venu’s launch, Disney reached a deal to take 70% ownership of Fubo and combine it with Hulu + Live TV. Fubo dropped their lawsuit and the Venu Sports plan was scrapped.
Sen. Warren says this new venture would “allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor.”
Warren, along with Senator Bernie Sanders and Representative Joaquin Castro, previously wrote to the DOJ and FCC about Venu Sports’ potential antitrust violations. Rep. Castro and Rep. Jerrold Nadler also sent a letter to the company CEOs about their concerns.
Warren wrote in her latest letter that the acquisition is “inextricably linked to Disney’s attempt to dominate the sports streaming marketplace through Venu Sports.” She argues it would decrease competition, violate antitrust law, increase costs for viewers, and “should be regarded as another data point in Disney’s history of anticompetitive behavior.”
Warren notes that since acquiring Hulu in 2019, Disney has raised the price of Hulu + Live TV from $45 per month to $82.99 per month. She says Disney plans to consistently increase the price of Venu by $5 every year, on top of the expected launch price of $50.
“Disney is already one of the most powerful media companies in the world,” Warren wrote. “Threatened by Fubo’s lawsuit and in an apparent attempt to keep Fubo from ‘becoming the next Netflix,’ Disney has proposed a plan to acquire its competitor, and, in the process become an even more powerful force in an already highly-concentrated market.”
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.”
Though Fubo and Hulu + Live TV businesses are merging, they are expected to remain separate streaming options. Disney is also planning to launch a new ESPN streaming service this fall.
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