Fubo Subscriber Sues Disney for Antitrust Violations

A Fubo subscriber, Cole Unger, has filed a proposed class-action lawsuit against Disney, alleging antitrust violations stemming from Disney's ownership of ESPN. The lawsuit claims that Disney engages in anti-competitive practices by forcing live TV streaming services to carry less popular channels to access ESPN, significantly inflating prices for consumers. Unger asserts that this practice restrains competition against rivals like Hulu and compels independent services like Fubo to charge higher prices than they otherwise would in a free market. The complaint also notes that Disney's recent merger plans with Fubo and the shutdown of the Venu sports streaming service further highlight these issues. Legal experts are monitoring the case closely, considering it may challenge the industry's long-standing practice of bundling popular and less-desirable channels. Disney's dual role as both content supplier and distributor is central to the allegations, as it purportedly allows the company to extract 'monopoly rents' from streaming services.