- Sen. Elizabeth Warren has asked the DOJ to “closely scrutinize” Disney’s deal with Fubo TV.
- She said the deal reduces competition and incentivizes Disney to raise prices for consumers.
- Sports fans have complained about the rising cost of watching televised sports for years.
Sen. Elizabeth Warren has asked the Justice Department to “closely scrutinize” Disney’s deal with Fubo TV, saying it could lead to consumers paying higher prices.
Warren raised concerns about Disney’s moves on Tuesday in a letter addressed to the agency’s Antitrust Division.
Disney fought a legal battle with Fubo in 2024 over Venu, a sports-focused streaming service Disney planned to launch with Fox and Warner Bros. Discovery. Fubo filed an antitrust lawsuit against the media giants, saying they engaged in anti-competitive practices and that launching Venu would further block Fubo’s businesses.
In January, Disney announced that it settled litigation with Fubo and the two companies had reached a deal to combine Disney’s Hulu + Live TV with Fubo.
Under the deal, Disney owns about 70% of Fubo and becomes the majority owner. After the deal, Disney canceled plans to roll out Venu.
In the letter, Warren wrote that the new deal “appears to allow Disney to simultaneously circumvent the lawsuit while gobbling up a competitor.”
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“This proposed acquisition raises significant concerns under antitrust law, 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 anti-competitive behavior.”
Regarding consumers, Warren wrote that Disney could use the lack of marketplace competition to increase costs. The rising cost of streaming sports has been a persistent complaint among consumers for years. A 2024 YouGov report found that price was one factor that prevented more Americans from watching sports on streaming services.
“If the takeover of Fubo is successful, Disney and Fubo will only increase their leverage, and could use the reduced competition and the resultant market power to raise prices even further for sports fans across the country,” Warren wrote. “By simultaneously marketing Fubo and Hulu + Live TV, Disney could disguise their concentration of power in the vMVPD market, giving customers the illusion of choice while raising prices for both offerings.”
Warren wrote that the deal is Disney’s attempt to dominate the sports streaming marketplace and stop Fubo from “becoming the next Netflix.”
“I urge DOJ not to be fooled by Disney’s attempt to purchase its way around antitrust law, and to closely scrutinize this proposed acquisition,” Warren wrote.
Representatives for Disney did not respond to a request for comment from Business Insider.
As part of Disney’s deal, Fubo will continue to operate as an independently publicly traded company and retain its existing management team. Fubo will also operate as a separate brand from Hulu + Live TV.
A January press release from Disney and Fubo said the deal would give viewers a variety of options.
“Fubo will have the ability to offer consumers multiple and flexible streaming options enabling them to select the streaming package that’s right for them,” it read.
