Disney did not petition the court to dismiss the antitrust lawsuit involving Hulu and ESPN

In the streaming era, almost every major studio and media company has entered the game. However, some consumers have noticed that as the market becomes more saturated, Disney has much more control over the industry.

What’s going on:

According to DeadlineDisney’s efforts to dismiss an antitrust class action lawsuit have once again failed.
A lawsuit filed by YouTube TV subscribers in November 2022 alleges that Disney’s control over ESPN and Hulu allowed the company to inflate prices in the streaming market.
It also states that Disney is requiring streamers, including YouTube TV and Sling TV subscribers, to include ESPN in their entry-level packages, raising prices for consumers.
While Disney unsuccessfully petitioned the court to dismiss the lawsuit, Judge Davila in California cut off the plaintiff’s option for compensation. If the lawsuit is successful, Disney will still be held liable for any future antitrust violations.
Judge Davila wrote: “Because Plaintiffs expressly alleged that the terms of the MFN provision permit Disney to set a floor price and raise competitors’ ESPN prices (which translates into subscription package prices) whenever it raises Hulu’s prices, the Court finds that Plaintiffs allegations sufficient to establish Disney’s market power in the well-defined SLPTV market in the United States.”
The Walt Disney Company does not comment on the verdict.

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