Elizabeth Warren Slams Disney, Fubo Deal: 'Anticompetitive Behavior' Red Flag

In a letter to the Department of Justice (DOJ), Senator Elizabeth Warren (D-Mass.) has slammed Disney's proposed acquisition of a majority stake in FuboTV, warning that the deal could lead to higher prices for consumers and raise significant concerns under antitrust law. Warren argues that the acquisition 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.

Disney announced in January that it would merge its Hulu + Live TV service with Fubo and take 70% ownership of the combined company. A few days later, Disney, Fox, and Warner Bros. Discovery dropped their plans to launch Venu Sports, a combined streaming service. In her letter to the DOJ's Antitrust Division, Warren argued that the Disney-Fubo deal allows the company to "gobble up a competitor" and could lead to higher prices.

Warren also raised alarms about Venu Sports last summer, joining with Sen. Bernie Sanders and Rep. Joaquin Castro to warn that the joint venture would dominate the market for live sports on streaming TV. Fubo sued Disney, Fox, and WBD last year, arguing that the companies were abusing their market power to squeeze a smaller rival and potentially drive it out of business. A judge granted Fubo's request for an injunction in August, which blocked Venu from launching.

Disney's proposed acquisition of Fubo is inextricably linked to the company's attempt to dominate the sports streaming marketplace through Venu Sports. Disney directly competes with Fubo through Hulu + Live TV. Since acquiring Hulu in 2019, Disney has raised the price of Hulu + Live TV by 85%, from $45 per month to $82.99 per month, while using its market power to lead competitors to raise prices as well. If the takeover of Fubo is successful, Disney will only increase its leverage, and could use the reduced competition and the resultant market power to raise prices even further for sports fans across the country.