Senators Elizabeth Warren (D-MA) and Bernie Sanders (I-VT), joined by Representative Joaquin Castro (D-TX), are urging the Department of Justice (DOJ) and the Federal Communications Commission (FCC) to investigate the newly formed joint venture, Venu Sports.
This venture, a collaboration between Disney, Fox, and Warner Bros. Discovery, aims to create a comprehensive streaming service for sports, raising significant antitrust concerns.
The lawmakers’ letter, first reported by The Athletic, warns that Venu Sports could control more than 80% of nationally broadcast sports and over half of all national sports content. This substantial control could enable the venture to exercise monopoly power over televised sports, potentially leading to higher prices for consumers. The new service, set to launch at a price of $42.99 per month, will include sports networks from ESPN, Fox, and TNT.
Challenges for Competitors
The letter addressed to DOJ antitrust chief Jonathan Kanter and FCC Chair Jessica Rosenworcel highlights that competitors to Venu Sports would need to:
- Negotiate with Disney, Fox, and Warner Bros. for access to major sporting licensing rights.
- Compete against these companies to offer the best product for broadcast or streaming.
This situation raises concerns under antitrust laws and may violate national ownership cap rules, which limit a single company’s control to stations reaching more than 39% of U.S. households.
This joint venture has drawn attention and criticism from various quarters. Representative Jerry Nadler (D-NY), a prominent Democrat on the House Judiciary Committee, indicated in April that he and Castro were seeking more information to ensure that this consolidation does not result in higher prices and fewer choices for consumers. Additionally, in May, companies such as FuboTV, DISH Network, DirecTV, and Newsmax urged key congressional committees to investigate the deal. They warned that Venu Sports would have the power and incentive to eliminate its competitors.
The lawmakers also noted that this joint venture is part of a trend toward consolidation in the television industry, driven by mergers and acquisitions. They emphasized that describing the deal as a “joint venture” should not exempt it from thorough antitrust and telecommunications scrutiny.
Featured Image courtesy of Bloomberg via Getty Images
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