Anticompetitive Sports Streaming JV Blocked by Judge Garnett
Friday afternoon, the Honorable Judge Garnett blocked the Disney/Fox/Warner sports streaming joint venture, Venu Sports. In response, Sports Fans Coalition issued the following statement:
"Sports Fans Coalition has fought against consolidation in the sports industry for many years. Today, Judge Garnett fought alongside us. Her quick and decisive ruling granting the preliminary injunction against Disney, Fox, and Warner’s Joint Venture is a big win for sports fans nationwide. Fans want skinny sports bundles, but they also want competition and choice. She agreed with our amicus brief and found that the JV would likely 'greatly increase the risk that consumers will be vulnerable to price increases, decreased quality, and decreased options in the market.' We thank Judge Garnett for standing up for sports fans and stopping this anticompetitive monopoly." -- Brian Hess, Executive Director
On August 5th, Sports Fans Coalition along with America Economic Liberties Project, Electronic Frontier Foundation, Open Markets Institute, and Public Knowledge filed an amicus brief in FuboTV INC. and FuboTV Media Inc. vs. The Walt Disney Company, ESPN, Inc., ESPN Enterprises, INC. Hulu, LLC, Fox Corporation, and Warner Bros. Discovery in support of FuboTV’s Motion for a Preliminary Injunction against the anticompetitive joint venture in their antitrust lawsuit. As we wrote, “it is critical that the Court grant injunctive relief to halt Defendants’ anticompetitive conduct. Defendants’ restrictive licensing practices have already caused significant harm to consumers and competition; and, combined with the JV, this conduct will all-but guarantee Defendants an immediate and durable monopoly in the market for skinny sports bundles.”
Judge Garnett accepted our brief, saying, “Neither Plaintiffs nor Defendants, naturally pursuing their own economic interests, are necessarily adequately representing the perspectives or interests of consumers in the relevant market. Accordingly, the Court finds that the proposed amicus brief, filed by well-respected non-profit organizations with a history of advocating for consumers in areas relevant to this litigation, has the potential to aid the Court and ‘offer insights not available from the parties.’”
In our brief, we argue that the JV will eliminate market competition, stifle innovation, and harm consumers. Specifically, the JV will:
Result in a substantial loss of competition among defendants and the JV will create a “fat monopoly” in the market for skinny sports bundles.
Increase the risk of anticompetitive coordination among the Defendants and other Market Participants.
Harm consumers by leading to increased prices and decreased quality
Lead to fewer options and access to diverse sports programming
Less innovation
Harm sports leagues and other creators from anticompetitive conduct.
In Judge Garnett's final order, she says, "As the Amici point out in their submission, these consequences greatly increase the risk that consumers will be vulnerable to price increases, decreased quality, and decreased options in the market."
All sports fans love an underdog story, and right now, there isn't a bigger one than FuboTV v Disney. We agree with the Judge's findings that the "balance of equities tips decidedly in favor of Plaintiffs and the public interest would be served by the entering of a preliminary injunction."