U.S. Sen. Elizabeth Warren (D-MA) has asked the U.S. Dept. of Justice to “closely scrutinize” Disney’s acquisition of FuboTV, expressing concerns that the deal could violate antitrust law and lead to higher subscription prices.
The deal, announced last month, resolves a lawsuit that Fubo filed in February 2024 against Disney, Fox, and Warner Bros. Discovery, which at the time collectively controlled more than 80% of nationally broadcast sports. A federal judge found that the three companies’ joint venture, Venu Sports, likely violated antitrust law.
In a letter sent to Omeed Assefi, Acting Assistant Attorney General for the United States Department of Justice’s (DOJ) Antitrust Division this week, Warren said that Disney’s proposed acquisition of Fubo “appears to allow Disney to simultaneously circumvent the negative outcome of the lawsuit while eliminating a competitor.”
“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 anticompetitive behavior,” wrote Sen. Warren. “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 first raised concerns about Venu Sports in August 2024. Later that month, the U.S. District Court for the Southern District of New York enjoined the launch of that venture. Shortly after Disney appealed to the U.S. Court of Appeals for the Second Circuit, the DOJ’s Antitrust Division filed an amicus brief supporting the District Court’s findings that Venu Sports would have anticompetitive effects on the market.
“Disney’s proposed acquisition of Fubo is inextricably linked to the company’s attempt to dominate the sports streaming marketplace through Venu Sports” Warren said in a statement. “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.”
Warren urged the DOJ to terminate the deal if it thinks antitrust laws have been broken.
“Disney has proposed a plan to acquire its competitor, and, in the process become an even more powerful force in an already highly-concentrated market,” she wrote. “I urge DOJ to continue [its] work on behalf of viewers by closely scrutinizing this proposed deal and blocking it if it violates antitrust law.”