Sen. Warren Sounds Alarm on Disney-Fubo Deal: Calls for DOJ Scrutiny Over Antitrust Concerns

Senator Elizabeth Warren is urging the Justice Department to take a closer look at Disney’s plan to take over Fubo, warning that the deal could harm competition and drive up prices.

Disney announced in January that it would merge its Hulu + Live TV service with Fubo, giving the entertainment giant a 70% stake in the combined company. Soon after, Disney, Fox, and Warner Bros. Discovery abandoned their plans to launch Venu Sports, a joint streaming service for live sports.

In a letter to the DOJ’s Antitrust Division, Warren argued that the deal allows Disney to “gobble up a competitor” and strengthen its hold on the market. She expressed concern that this move would lead to fewer choices and higher costs for consumers.

“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,” Warren wrote.

Last year, Fubo took legal action against Disney, Fox, and Warner Bros. Discovery, accusing them of using their influence to push out smaller competitors. A judge later granted an injunction that prevented Venu Sports from launching. The lawsuit was dropped as part of the Disney-Fubo agreement.

Warren believes this move allows Disney to sidestep antitrust laws by eliminating a rival instead of competing fairly. “Disney is already one of the most powerful media companies in the world,” she wrote. “Threatened by Fubo’s lawsuit and in an apparent attempt to keep Fubo from ‘becoming the next Netflix,’ 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.”

Despite the merger, Fubo and Hulu + Live TV are expected to operate separately. Meanwhile, Disney is set to launch a new ESPN streaming service later this year.

Warren addressed her concerns to Omeed Assefi, the interim head of the DOJ Antitrust Division, and copied Gail Slater, a former Fox Corp. executive and Trump nominee awaiting confirmation for the role. She called on the DOJ to “closely scrutinize this proposed deal and block it if it violates antitrust law.”

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