Nov 27 (Reuters) - The U.S. Justice Department and 16
U.S. states said in a pair of court filings that they support a
court order won by FuboTV ( FUBO ) in August that temporarily
blocked Walt Disney ( DIS ), Fox and Warner Bros
Discovery ( WBD ) from launching a competing sports streaming
venture.
The Justice Department, New York, Illinois, California and
other states on Tuesday urged the 2nd U.S. Circuit Court of
Appeals to uphold the preliminary injunction.
Sports-focused live TV streaming company Fubo in February
sued to block the new venture, called Venu Sports, arguing it
will violate U.S. antitrust law by reducing competition and
driving up prices. Venu and the media giants have denied the
claims, asserting that the platform will offer more consumer
choice.
The Justice Department and state coalition, which included
the District of Columbia, submitted Tuesday's filings as
friend-of-the-court briefs to express their views. They are not
part of the lawsuit.
Six other states, including Florida, backed the media
companies and Venu in a brief filed in September.
Fubo in a statement said support from the Justice Department
and states "reinforces our belief that the appellate court will
uphold the preliminary injunction against the defendants."
Venu has said "Fubo's arguments are wrong on the facts and
the law" and that Fubo had not shown it was entitled to the
injunction.
The Justice Department did not immediately respond to a
request for comment.
Venu, which would combine thousands of live professional and
collegiate sporting events into a single app, was scheduled to
launch this fall. Disney ( DIS ), Fox and Warner Bros contend they have
no "duty to deal" with Fubo to help it compete with Venu.
U.S. District Judge Margaret Garnett in her preliminary
injunction ruling said Venu's media partners could "exercise
near-monopolistic control" over sports rights to prevent rivals
from emerging.
The Justice Department in its filing said a joint venture
can be unlawful "even if that same conduct would be legal when
done by a single firm."
New York and the other states told the court that "just as
forcing rivals to work together can harm competition, allowing
rivals to agree to work together can also harm competition."
The case is FuboTV ( FUBO ) et al v. The Walt Disney Company ( DIS ) et al,
2nd U.S. Circuit Court of Appeals, No. 24-2210.
Read more:
US judge delays launch of sports streaming venture from
Disney ( DIS ), media giants
FuboTV ( FUBO ) files antitrust lawsuit to block Disney ( DIS ), Fox, Warner
sports streaming deal