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Lawmakers Urge DOJ and FCC to Investigate Potential Sports Streaming Monopoly

By  |  August 7, 2024
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In a letter first reported by The Athletic, Senators Elizabeth Warren (D-MA) and Bernie Sanders (I-VT), along with Representative Joaquin Castro (D-TX), are calling on the Department of Justice (DOJ) and the Federal Communications Commission (FCC) to scrutinize a new joint venture called Venu Sports that could monopolize sports television. The lawmakers are urging the regulators to examine the deal involving Disney, Fox, and Warner Bros., who plan to create the new streaming service.

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    According to The Verge, the joint venture aims to integrate sports networks from the three companies’ portfolios, including ESPN, FOX, and TNT, under the new service, which is expected to launch at $42.99 per month. The legislators express concerns that Venu Sports could control more than 80% of nationally broadcast sports and over half of all national sports content, effectively granting it monopoly power over televised sports.

    In their letter to DOJ antitrust chief Jonathan Kanter and FCC Chair Jessica Rosenworcel, the lawmakers warned that this concentration of control could enable Venu Sports to “discriminate against competitors and increase prices for consumers,” according to The Verge. They emphasized that the deal could violate antitrust laws and national ownership cap rules, which prohibit a single company from owning stations that reach more than 39% of US households.

    The legislators highlighted the practical challenges for Venu Sports’ competitors, who would have to negotiate with Disney, Fox, and Warner Bros. for access to major sports licensing rights while competing against these companies. Per The Verge, Rep. Jerry Nadler (D-NY), a prominent figure in tech antitrust legislation, alongside Rep. Castro, has been vigilant about the deal since April, seeking assurances that the consolidation wouldn’t lead to higher prices and fewer choices for consumers.

    Streaming competitors also voiced their concerns earlier this year. In May, organizations like Fubo, DISH Networks, DIRECTV, and Newsmax urged congressional committees to investigate the potential ramifications of the joint venture. They warned that Venu Sports would have “the power and incentive to drive out its competitors,” as noted by The Verge.

    Lawmakers argue that this joint venture is part of a broader trend of consolidation in the television industry driven by mergers and acquisitions. They insist that describing the deal as a “joint venture” should not exempt it from rigorous scrutiny by antitrust and telecommunications regulators.

    “The description of this deal as a ‘joint venture’ should not prevent antitrust and telecommunications regulators from giving it the scrutiny it deserves,” the lawmakers wrote, emphasizing the necessity for vigilant oversight to protect competition and consumer interests in the evolving landscape of sports broadcasting.

    Source: The Verge