Disney faces new antitrust lawsuit over ESPN bundling practices
Disney faces new antitrust lawsuit over ESPN bundling practices
One Fubo customer is seeking class-action status for a suit that would punish Disney’s ownership of both ESPN and Hulu + Live TV.
Disney’s legal team has had plenty of experience combing through antitrust statutes of late. That may put the company in an advantageous position, as it reportedly faces legal action centering on a new antitrust complaint. A Fubo customer is suing the House of Mouse, and seeks class-action status for a case that alleges Disney is engaging in anticompetitive practices by inflating prices and forcing live TV streaming services to stuff channel plans with networks viewers don’t watch.
Key Details:
- The suit says that Disney’s ownership of ESPN allows it to demand “monopoly rents” from distributors.
- Disney’s ownership of channels and its status as a distributor are forcing other services to raise prices even higher, according to the suit.
- Disney recently faced another antitrust lawsuit based on its participation in the Venu Sports joint venture service.
The new lawsuit has been brought by Fubo customer Cole Unger and is rather broad in scope. It alleges that Disney has participated in a “multifaceted campaign to suppress competition in the market for live television streamed over the internet to paying subscribers.”
According to the suit, Disney has done this by charging “monopoly rents” for ESPN, which has long been the most expensive — and popular — cable channel to carry for major distributors. Also at issue are Disney’s practices of forcing cablers to carry less popular channels to get ESPN, compelling them to include that channel in their least-expensive plans. This has been the standard operating procedure by every channel owner since the dawn of cable, but it has been called into question regularly in recent months.
Additionally, Unger alleges that Disney’s ownership of Hulu + Live TV forces competitors to raise their prices higher than they would otherwise since the company is profiting from both sides of the equation.
The plaintiff is seeking “all forms of available relief under this statute, including actual damages, treble damages, and reasonable costs and attorneys’ fees.” The “treble damages” would be the standard penalty should Disney be found liable under American antitrust laws.
Disney was likely hoping to be out of the woods as far as antitrust complaints go. recent A deal with Fubo that will see that service merge with Hulu + Live TV abrogated the need for a continuance of that company’s antitrust suit against Venu Sports, a joint venture service Disney was trying to bring to market with Fox and Warner Bros. Discovery. Venu has since been shut down by its three originators, paving the way for a similar service that will be brought to market by Fubo.
In addition, Disney faces a suit quite similar to the one filed by Unger. In 2022, a group of YouTube TV subscribers filed a case against the company regarding ESPN bundling practices, and in summer 2024 the presiding judge ordered it to trial, deflecting several attempts by Disney to have it dismissed.
Hulu Live TV
Hulu Live TV is a live TV streaming service with more than 70 channels for $82.99/month. Hulu + Live TV base plan includes local channels, 33 of the top 35 cable channels, and regional sports networks (RSNs). Subscribers get free access to Disney+ and ESPN+ at no extra charge.