DOJ Reportedly Probes Disney-FuboTV Streaming Deal Over Antitrust Concerns

The U.S. Department of Justice (DOJ) is reportedly investigating the proposed sports streaming joint venture between Disney, Fox, and Warner Bros. Discovery (WBD) amid antitrust concerns, according to a report by TechCrunch. This venture, which aims to combine the companies’ sports content into a single streaming service, has raised eyebrows among regulators and competitors alike.

FuboTV, a sports-focused streaming service, has been a vocal critic of the deal. In February, Fubo sued the media giants, alleging that the joint venture violates antitrust laws. Fubo argues that Disney, Fox, and WBD are engaging in a coordinated effort to stifle competition and dominate the sports streaming market.

The DOJ’s probe underscores the increasing scrutiny of media consolidation and the potential for anti-competitive practices in the streaming industry. The joint venture would combine sports content from ESPN, Fox Sports, and TNT, potentially giving the new service a significant advantage over smaller competitors.

“We believe that the combination of these media giants will lead to higher prices and less choice for consumers,” said a FuboTV spokesperson. “We are confident that the DOJ will carefully review this deal and take appropriate action to protect competition.”

Disney, Fox, and WBD have defended the joint venture, arguing that it will benefit consumers by providing a more comprehensive and affordable sports streaming option. They also contend that the service will face competition from other streaming platforms and traditional cable providers.

However, critics remain skeptical, pointing to the potential for the joint venture to leverage its market power to extract higher fees from distributors and limit the availability of sports content on other platforms. The DOJ’s investigation is expected to delve into these issues and assess the potential impact of the deal on consumers and the competitive landscape.

The outcome of the DOJ’s investigation could have significant implications for the future of sports streaming. If the DOJ finds that the joint venture violates antitrust laws, it could seek to block the deal or impose conditions to mitigate its anti-competitive effects.

As the streaming wars continue to intensify, regulators are likely to pay close attention to mergers and acquisitions that could further consolidate power in the hands of a few dominant players. The Disney-Fox-WBD joint venture is a key test case for how the DOJ will approach these issues in the years to come.