Dish Network Countersues Disney and ESPN Over Sling TV Passes, Alleging Antitrust Violations

According to Variety, Dish filed antitrust and breach-of-contract counterclaims on Friday, Jan. 2, in the U.S. District Court for the Southern District of New York. The move comes in response to Disney’s earlier lawsuit challenging Sling TV’s recently introduced Sling Passes, which offer one-day, three-day, and one-week access to the streaming service. Disney has argued that those passes violate the terms of its carriage agreement with Dish.

The dispute follows a November ruling in which a federal judge declined to block Sling Passes. As reported by Variety, the court found that Disney failed to show it was likely to succeed on its breach-of-contract claims or that it would suffer irreparable harm if the short-term plans continued. That ruling cleared the way for Dish to keep offering the passes while the broader legal battle plays out.

In its counterclaims, Dish maintains that it was not required to seek Disney or ESPN’s approval before launching the short-term options. The company stated in its filing that it “avers that it had no contractual obligation to consult” with Disney or ESPN ahead of the rollout. Dish also acknowledged that “a limited number of promotional materials for Sling Passes included the phrase ‘with no subscription,’ which was inaccurate,” according to the court documents cited by Variety.

Beyond the contract dispute, Dish’s lawsuit takes aim at Disney’s broader business practices, alleging the company is using its market power to “destroy competition” and suppress innovation in the pay-TV and streaming marketplace. Dish also claims Disney has “flagrantly” breached its own agreements by offering rival distributors more favorable terms while denying the same to Dish and Sling, despite the presence of “most favored nation” clauses that Dish says should guarantee equal treatment.

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Per Variety, Dish further alleges that Disney is violating the Sherman Act by tying access to ESPN’s sports networks to the carriage of additional, lower-value channels. Dish argues this arrangement forces Sling TV “to carry content customers don’t want, inflating costs and blocking affordable packaging,” making it harder to offer lower-priced, flexible options to consumers.

The counterclaims also target Disney’s recent strategic moves in the sports streaming space. Dish contends that Disney’s acquisition of Fubo, combined with the merger of that service with Hulu’s live TV business, unlawfully reduces competition. According to Variety, Dish argues that by acquiring Fubo, Disney “effectively hoards consumer-friendly sports options for itself and blocks alternative skinny bundles.” Dish has also raised concerns about the ESPN-Fox One bundle, alleging it further concentrates power in Disney’s hands.

Additionally, Dish claims Disney is attempting to dominate what it describes as the “skinny sports bundle market” through the planned launch of the ESPN Unlimited standalone streaming service, along with its acquisitions and enforcement of what Dish characterizes as restrictive contracts. The filings argue that these actions are designed to ensure Disney becomes the sole provider of flexible sports packages, ultimately driving up prices for consumers.

Dish is seeking unspecified monetary damages, a court declaration that Disney and ESPN have violated U.S. antitrust laws, and injunctive relief. According to Variety, that relief would include forcing the unwinding of Disney’s acquisition of Fubo as well as the ESPN-Fox One bundle, marking a potentially significant challenge to Disney’s recent expansion in sports streaming.

Source: Variety