Senator Elizabeth Warren Raises Antitrust Concerns With Disney Fubo Deal

In a letter to the DOJ's Antitrust Division, Warren claimed that the Disney-Fubo agreement could enable the company to "gobble up a competitor," potentially resulting in higher prices.

Senator Elizabeth Warren has called on the Justice Department to investigate Disney's acquisition of a controlling stake in Fubo, citing potential antitrust concerns.

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Senator Elizabeth Warren has called on the Justice Department to thoroughly examine Disney's acquisition of a controlling interest in Fubo, expressing concerns that this consolidation raises antitrust issues.
According to Variety, Disney revealed in January its intention to merge its Hulu + Live TV service with Fubo, acquiring a 70% stake in the newly formed entity.
Shortly thereafter, Disney, Fox, and Warner Bros. Discovery abandoned their initiative to introduce Venu Sports, a joint streaming platform.
In correspondence addressed to the Antitrust Division of the DOJ, Warren contended that the Disney-Fubo agreement enables the company to "gobble up a competitor," potentially resulting in increased prices.
Warren wrote, “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 anticompetitive behavior."
Last summer, Elizabeth Warren raised concerns about Venu Sports, teaming up with Senator Bernie Sanders and Representative Joaquin Castro to warn that the partnership could dominate the streaming television market for live sports.
Fubo initiated legal action against Disney, Fox, and WBD last year, claiming that these companies were misusing their market dominance to undermine a smaller competitor and possibly eliminate it from the market.
In May, Fubo collaborated with DirecTV and DISH Networks to advocate for Congressional hearings on the issue.
A judge approved Fubo's request for an injunction in August, preventing Venu from initiating its launch.
Disney, Fox, and WBD have filed appeals. Last fall, the Biden Department of Justice filed an amicus brief supporting the injunction, while several Republican members of Congress voiced their dissent, arguing that Venu would provide a new choice in a competitive market.
The legal proceedings were terminated as a component of the agreement between Disney and Fubo.
In her letter, Warren argued that Disney has managed to bypass antitrust regulations by purchasing a rival company.
She 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."
Fubo and Hulu + Live TV are expected to remain separate services, even though they will operate under the same corporate umbrella.
Furthermore, Disney is set to introduce a new ESPN streaming service this fall. In a recent earnings call, CEO Bob Iger mentioned that Venu has become "redundant" because of the increasing popularity of various skinny bundles.
Warren addressed her correspondence to Omeed Assefi, the acting head of the DOJ Antitrust Division, and also included Gail Slater, who is President Trump’s nominee awaiting confirmation for that position.
Slater has held the position of senior vice president at Fox Corp. and has been registered as an in-house lobbyist for Roku.
Warren indicated in the letter that the prior administration had strongly resisted Disney's attempts to initiate Venu.
She said, “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."

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