In a significant win for streaming service FuboTV, a federal judge has denied motions to dismiss its antitrust lawsuit against entertainment giants Walt Disney, Warner Bros. Discovery (WBD), and Fox. The ruling, delivered by Judge Margaret Garnett, also rejected Fox’s attempt to move part of the case to a different court as spotted by Awful Announcing.
This decision marks another chapter in the ongoing legal battle sparked by the now-stalled sports streaming app, Venu Sports, a joint venture between the three media companies. In August, Judge Garnett issued a preliminary injunction halting Venu’s launch, a decision currently under appeal.
FuboTV’s lawsuit centers on several key allegations:
- Anti-competitive bundling: Fubo accuses Disney and Fox of “tying” – forcing distributors to purchase bundles of channels instead of allowing them to license individual ones. This practice, Fubo argues, prevents them from offering a sports-focused package to consumers.
- Block booking: Fubo also claims Disney and Fox engage in “block booking,” requiring distributors to carry less popular channels to secure access to more desirable ones.
- Most-favored-nation clauses: Fubo alleges all three defendants utilize most-favored-nation clauses in their contracts, ensuring they receive the lowest fees offered to any distributor. This practice, Fubo claims, results in inflated prices for their service.
Judge Garnett’s denial of the dismissal motions signals that FuboTV has presented a compelling case, echoing her earlier preliminary injunction ruling. However, she cautioned against drawing conclusions about the final outcome, emphasizing that her decision was based on the assumption that all of Fubo’s allegations are true, a standard legal practice at this stage of litigation.
The courtroom drama unfolded over a day filled with complex legal arguments and discussions of sensitive commercial terms. Judge Garnett’s swift delivery of her written opinions after a brief recess suggests she had carefully considered the arguments beforehand.
This case has significant implications for the pay-TV industry, already grappling with cord-cutting and evolving consumer preferences. A ruling against bundling could disrupt long-standing industry practices and potentially reshape the television landscape.
The legal battle is far from over. The next phase will involve discovery, expert testimonies, and summary judgment motions, culminating in a trial scheduled for October 7, 2025. Meanwhile, the appeal regarding the Venu Sports injunction will be heard by the Second Circuit Court of Appeals early next year.