Disney has once again not dismissed a class action lawsuit based on antitrust violations

Disney failed again in his trial dismiss the class action lawsuit submitted by several streaming subscribers violating antitrust rules.

The complaint filed two years ago concerned the entertainment giant purchase of Hulu and ESPN questioned supply and demand made by other streaming services because it enabled the Walt Disney Corporation “inflate prices on the market” but also “set a minimum price.“

The case will be continued, but unlike the previous ones Disney will not have to pay compensation if he is guilty. That’s what the US district judge said Edward J. Davila on Tuesday in a ruling obtained by Deadline:

“The Court once again finds Plaintiffs’ allegations sufficient to establish Disney’s market power in the well-defined SLPTV market in the United States.”Ruling by U.S. District Judge Edward J. Davila

It all started in November 2022, when YouTube subscribers in several states sued Disney, claiming that purchase of the sports channel ESPN and the youth channel Hulu allowed the giant led by Bob Iger to inflate prices on the market by raising the prices of its own products.

The plaintiffs explained this Disney forced streaming services like YouTube TV and Sling TV Down raise the price of their basic packages if they included an ESPN subscription.

In addition, the plaintiffs alleged that the Disney acquisition violated antitrust laws Hulu and Hulu + Live TV allowed the giant to control content and distribution, thus acting a major obstacle to other suppliers entering the market.

Both charges will continue although slower than expected. What they will not be able to demand under any circumstances is compensation.

“Because plaintiffs expressly alleged that the terms of the MFN provision permitted Disney to do so set a floor price and raise competitors’ ESPN prices (which translates into subscription package prices) each time it increases Hulu’s prices, the Court finds Plaintiffs’ allegations sufficient to establish Disney’s market power in the well-defined SLPTV market in the United States,” Judge Davila wrote in a ruling posted Tuesday to The Reporter from Hollywood.

Meanwhile, the entertainment giant continues to pursue mergers and create co-packages with other major cable channels and streaming serviceswhich may mean further legal problems for the company in the future.

The Walt Disney Company has not yet commented on this ruling. However, it is expected to attempt to dismiss the lawsuit again, as it did in October 2022.