Sen. Elizabeth Warren Calls for DOJ Scrutiny of Disney-Fubo Deal Over Antitrust Concerns

Senator Elizabeth Warren has urged the U.S. Department of Justice to take a closer look at Disney’s recent agreement to acquire a majority stake in Fubo, citing concerns over potential antitrust violations, according to Variety.

Disney announced in January that it would merge its Hulu + Live TV service with Fubo, securing a 70% ownership stake in the newly combined entity. The move came just days after Disney, Fox, and Warner Bros. Discovery abandoned their plans to launch Venu Sports, a joint sports streaming service. Per Variety, Warren argues that this latest deal represents another instance of Disney absorbing competition, which could lead to reduced market competition and higher costs for consumers.

In a letter addressed to the DOJ’s Antitrust Division, Warren expressed concerns that the deal enables Disney to “gobble up a competitor” and significantly enhance its market influence. She emphasized that the acquisition should be viewed as part of a broader pattern of Disney’s “anticompetitive behavior.” Variety notes that Warren previously voiced opposition to the Venu Sports venture alongside Sen. Bernie Sanders and Rep. Joaquin Castro, warning that it could monopolize the live sports streaming market.

Related: Disney-Fubo Deal Sparks Antitrust Concerns from DirecTV, Dish, and EchoStar

Fubo has been embroiled in legal battles with Disney, Fox, and Warner Bros. Discovery over alleged anticompetitive practices. Last year, Fubo sued the three companies, arguing that they were using their market dominance to push out smaller rivals. In May, Fubo partnered with DirecTV and DISH Network to call on Congress to investigate the issue. A judge later granted an injunction blocking Venu’s launch, a decision the Biden DOJ supported in an amicus brief, while some Republican lawmakers opposed it, asserting that Venu would enhance competition in the streaming space.

According to Variety, Disney, Fox, and Warner Bros. Discovery had appealed the ruling before ultimately dropping the litigation as part of the Disney-Fubo agreement. In her letter, Warren contended that Disney had effectively sidestepped antitrust regulations by acquiring a challenger rather than competing with it in the marketplace.

Source: Variety