Disney class action claims monopoly over streaming sports content

Disney class action lawsuit overview:

• Who: Cole Unger filed a class action lawsuit against The Walt Disney Co.
• Why: Unger claims Disney violated federal and state antitrust laws by allegedly suppressing competition in the market for streaming live pay television (SLPTV).
• Where: The class action lawsuit was filed in the New York federal court.

The Walt Disney Co. monopolizes the market for streaming live pay television by suppressing competition, a new class action lawsuit alleges.

Plaintiff Cole Unger’s class action lawsuit claims Disney uses its ownership of ESPN to extract monopoly rents in the streaming live pay television market through anticompetitive tactics.

Unger argues Disney makes streaming services carry its non-ESPN content to access ESPN, which forces the services to include ESPN as part of their cheapest package for consumers, inflating prices by means of most favored nation clauses and providing anticompetitive rebates to affiliated streaming services, such as Disney-owned Hulu.

“These anticompetitive tactics restrain competition from rivals to Disney’s Hulu in the SLPTV market and force independent streaming services, such as Fubo, to charge higher prices to their customers than they would in a free market,” the class action says.

Unger wants to represent a nationwide class and state repealer class of consumers who paid for a FuboTV subscription between Jan. 1, 2021, and the present.

Disney uses ESPN to ‘set a price floor’ in streaming market, class action claims

Unger argues Disney’s carriage agreements with its SLPTV competitors allow the company to use ESPN and Hulu to set a price floor in the streaming market and inflate prices market-wide by raising the prices of its own products.

“And this is exactly what Disney has done since it took operational control of Hulu in May of 2019,” the Disney class action says. “Disney uses its control over the Relevant Market to drive costs up for competitors like Fubo.”

Unger claims Disney is guilty of unjust enrichment and violating the Sherman Antitrust Act and  various state antitrust laws. 

The plaintiff demands a jury trial, requests declaratory and injunctive relief and an award of actual, treble and exemplary damages for himself and all class members.

Fubo filed an antitrust lawsuit against Disney, Fox Corp., Warner Bros. Discovery Inc. and their affiliates early last year over claims their announced joint sports streaming venture copied Fubo’s idea and blocked the company. 

Have you paid for a FuboTV subscription since January 2021? Let us know in the comments.

The plaintiff is represented by Gregory S. Asciolla, Alexander E. Barnett, Jonathan S. Crevier and John M. Shaw of DiCello Levitt LLP and Joseph J. DePalma, Mindee J. Reuben and Steven J. Greenfogel of Lite DePalma Greenberg & Afanador LLC.

The Disney class action lawsuit is Unger, et al. v. The Walt Disney Co., Case No. 1:25-cv-00375, in the U.S. District Court for the Southern District of New York.

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