Fubu says Venu Sports app will be bad for everyone

Venu Sports was officially announced in August 2024. The new streaming service promised a variety of sports content from Disney, Fox, and Warner Bros. Discovery. There will also be a huge selection of games and live events, thanks to partnerships with nearly every major sports association. Fubo immediately challenged the service with an antitrust lawsuit, citing “extreme suppression of competition in the U.S. sports-oriented streaming market.” Now, they’ve scored their first victory in that battle with a new ruling from a U.S. district judge.

Fubo argued that the massive combined control of these companies would create a virtual monopoly on sports services, negatively impacting companies like theirs and limiting consumer choice. As he noted CNBC It appears that Judge Margaret Garnett believes the case has merit and has temporarily blocked the service from launching. It appears that the new service may violate the Clayton Act, which governs mergers and acquisitions.

In her ruling, the judge stated, “The court finds that Fubo is likely to succeed on its claims that by entering into the (joint venture), the (joint venture) defendants will substantially lessen competition and restrict trade in the relevant market,” in the interim injunction she granted.

The service was supposed to launch just weeks before the NFL season and was supposed to be available for $42.99. While that’s a significant asking price, the service would offer a ton of content. As Judge Garnett noted in court documents, the three companies involved in Venu Sports control about 54% of all U.S. sports and at least 60% of all domestic U.S. sports broadcasting rights. The judge also suggested that number could actually be even higher.

Fubo co-founder and CEO David Gandler praised the decision, saying it “will help provide consumers with access to a more competitive marketplace with multiple options for streaming sports.” Unsurprisingly, the three companies behind the service were less thrilled with the response, with a representative for all three stating, “We respectfully disagree with the court’s ruling and will appeal it.”

At least until an official ruling or agreement is reached, it looks like Venu Sports is on hold. Only time will tell if this is temporary or if Venu Sports will be killed before it can even live.