Disney’s recent move to acquire a 70% stake in Fubo has ended its legal battle over the Venu Sports joint venture, but it has sparked fresh concerns about market competition. The acquisition, which also led Disney to shut down the Venu Sports project, is now under scrutiny for its potential antitrust implications.
Senator Elizabeth Warren, said, “The 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.”
Through the Fubo acquisition, Disney now holds greater influence over the virtual multichannel video programming distributor (vMVPD) market. The deal places Hulu + Live TV, Disney’s existing vMVPD service, under Fubo’s management, while still maintaining Disney’s overall control.
Warren highlighted that LODisney now controls around 35% of the vMVPD market and holds about 27% of U.S. sports broadcasting rights, including major leagues like the NFL, NBA, MLB, and NHL.
Senator Warren argues that even though Fubo and Hulu + Live TV will operate as separate services, their common ownership undermines fair competition.
Senator Warren, said, “ Even if Fubo and Hulu + Live TV are offered as separate services (as the initial plan suggests), their common ownership virtually eliminates any possibility of competition. FuboTV and Hulu + Live TV would both be owned by Disney, and would both be governed by the same board of directors ‘with the majority [of directors] appointed by Disney.’ Under this ownership structure, neither Disney nor the operating board of directors have a profit incentive for Fubo and Hulu + Live TV to compete.”
In a letter to the U.S. Justice Department, Warren expressed concerns that Disney’s strategy allows the company to avoid the initial Fubo lawsuit while gaining greater control over a competitor.
“Disney’s proposed acquisition of Fubo appears to allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor,” she stated.
Furthermore, Warren warned that the deal could negatively impact both competition and consumer pricing in the already concentrated vMVPD market. As Disney expands its reach across sports streaming and live TV services, the Justice Department’s response could set a precedent for future media mergers and their impact on market fairness.