OPINION | This article contains the author's opinion.
Federal Judge Edward Davila of the U.S. District Court in San Jose, California has allowed an antitrust lawsuit against Disney related to its streaming services to proceed.
YouTube TV subscribers said Disney’s “business deals with competitors have inflated the amount consumers pay for streaming live TV services,” according to Deadline.
“The suit said that because Disney requires streamers, including YouTube TV and Sling TV, to include ESPN in base packages, they are paying more for their subscriptions than they should.” (Trending: As Fauci’s Net Worth Surpasses $11 Million, Americans Take A Closer Look At His Disturbing Lies)
Disney must face consumer antitrust claims in TV streaming lawsuits https://t.co/2FNuOfCUqs pic.twitter.com/IxNwNCf7By
— Reuters (@Reuters) October 2, 2023
“They also alleged antitrust violation on the grounds that Disney’s control of content and distribution, including operating control of Hulu and its Hulu + Live TV, presented a barrier to entry into the market,” it added.
“The Court agrees with Disney that, to the extent Plaintiffs rely on allegations of reduced consumer choice and increased subscription prices, these allegations are insufficient to allege an injury to competition,” he said.
“Plaintiffs also allege that, in addition to increased prices, the infrastructure and agreements have produced barriers to entry.”
“Detailed allegations of barriers to entry are sufficient to allege anticompetitive harm.” the court said.
The judge said Disney’s conduct has prevented “entry by potential rival because a new entrant would need to contract with Disney in order to obtain several notable channels.” (Trending: Illegal Immigrant Deported 9 Times Commits Heinous Crime
“For the foregoing reasons, Defendant’s motion to dismiss for failure to state a claim is GRANTED IN PART and DENIED IN PART with leave to amend,” the court said.
According to The Hollywood Reporter (THR), “not only could Disney’s stewardship of the companies have reduced consumer choice and increased subscription prices, U.S. District Judge Edward Davila concluded that Disney may have enough control over the live-streaming pay TV market to impair competition.”
“He pointed to its ability to ‘prevent or retard entry’ of competitors by ‘mandating onerous terms or by outright refusing to license live television content,’” it added.
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