Senator Elizabeth Warren Raises Antitrust Concerns Over the Recent Disney-Fubo Deal
Massachusetts senator Elizabeth Warren is urging the Justice Department to examine Disney’s recent acquisition of a controlling stake in Fubo, warning that the merger of the two streaming giants raises antitrust concerns.
As a quick recap, Disney and Fubo were locked in their own antitrust legal battle over the launch of Venu Sports. The streaming service would have brought together the biggest sports networks from across Disney, Fox, and Warner Bros. Discovery.
Venu
After successfully blocking Venu’s launch last fall, Venu continued its court battle with the joint venture partners into 2025.
The Disney-Fubo Deal
Shockingly, in January, Disney announced that it was purchasing a 70% stake in Fubo and combining the streaming service with its own Hulu + Live TV.
Photo: Deadline
As part of the agreement, Disney, Warner Bros. Discovery, and Fox agreed to a financial settlement with Fubo, which dropped its suit against the joint venture partners.
Elizabeth Warren’s Antitrust Concerns
In a letter to the Department of Justice’s Antitrust Division, Warren argues that the Disney-Fubo deal allowed Disney to “gobble up a competitor” and could lead to higher prices for consumers.
“This proposed acquisition raises significant concerns under antitrust law, would give Disney increased market power and incentives to increase costs for viewers, and should be regarded as another data point in Disney’s history of anti-competitive behavior,” Warren wrote.
“Disney is already one of the most powerful media companies in the world. 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.”
It should be noted that Warren, along with Senator Bernie Sanders and Rep. Joaquin Castro, also opposed the launch of Venu. Noting that the Biden administration had “pushed back” on the joint venture partners’ efforts to launch the streamer, Warren urged the DOJ to continue that level of scrutiny.
Photo: Miriam-Webster
“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,” she concluded.
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