Disney Asks Judge to Dismiss “Bad Faith” Complaint Made Against Company

With the explosive rise in streaming in recent years, the relationships between studios and distributors have become more and more complicated. Prior to streaming, the two sides had a relatively symbiotic relationship. But now, it seems that almost every studio has its own streaming platform and wants to promote its own content.

Add to that the fact that fewer and fewer people are using cable, and the relationship between studios and distributors might be at an all-time low or very close to getting there.

Related: Streaming Services Face Backlash Over Complicated Cancellation Methods

In early September, DirecTV consumers were furious when they found themselves unable to access any Disney-owned channels, including the Disney Channel, ESPN, and ABC. The contract between Disney and DirecTV expired on September 1, and the two sides were struggling to come to an agreement. And, of course, each side was blaming the other for the problems hitting consumers.

Disney claimed that DirecTV was forcing consumers to buy packages with a ton of channels they didn’t want in order to access more popular channels. They wanted DirecTV to offer “skinny packages” or even ones that were customizable.

Related: Disney+ Insists 2% Deletion Rate Means There’s Still Plenty to Watch

DirecTV, on the other hand, claimed that its model had always been cable bundles. The company accused Disney of acting in bad faith and trying to force the company to charge customers more, all so Disney could promote its own channels and services. Disney responded, saying that DirecTV was just trying to be difficult.

The battle raged on for nearly two weeks, but finally, Disney and DirecTV reached an agreement, and consumers were once again able to access their favorite Disney-owned channels.

Despite the fact that things are now relatively cordial between the two sides, Disney is still asking a judge to step in.

According to a new report from TheWrap, the Mouse House has asked a judge to dismiss the “bad faith” comment that DirecTV made during negotiations.

Disney has asked the Federal Communications Commission to dismiss DirecTV’s complaint against the entertainment giant after the satellite TV operator accused it of negotiating in bad faith during its latest round of carriage negotiations that prompted a 13-day blackout of ABC and ESPN.

Disney says that DirecTV has misconstrued FCC precedent and mischaracterized the company’s actions during the negotiations, while “embellishing its argument with collateral and immaterial issues.”

It noted that the Aug. 31 issue list made “no reference whatsoever to the filing of complaints before regulatory authorities, including the FCC” and pointed out that the agency does not resolve claims concerning breaches of privately negotiated contractual agreements. Instead, it resolves claims about whether a party has breached its duty to negotiate in good faith under its own rules. The company argues that a review of the full record of negotiations would “lead any rational fact finder to conclude that Disney has more than met that duty.”

Disney is asking the judge to throw out the complaint, claiming that the company never acted in bad faith and that DirecTV had failed to prove such a claim.

This is not the first time that distributors have complained about Disney’s actions, especially since launching its streaming service Disney+. It is also not the only lawsuit Disney has to deal with regarding its streaming and distribution plans.

Earlier this year, Disney, Warner Bros., and Fox announced a joint streaming venture that sounded suspiciously like a cable package. The three studios claimed that they were going to revolutionize sports streaming by combining everything each company had to offer.

The companies would create a new app that would allow subscribers to access sports content from all three companies, including the NBA, MLB, NFL, PGA, and more.

Related: Fast Food Chain Announces Shocking Foray Into Streaming

FuboTV is currently suing to stop the merger — and, in turn, the new app — from happening. Fubo is claiming that if the merger were allowed to go through, it would violate antitrust laws. It would allow Disney, Fox, and Warner Bros. Discovery to create a monopoly on the sports streaming business, which would hurt companies like Fubo.

Do you think that Disney tried to leverage its weight and operated in bad faith during its negotiations with DirecTV? Let us know in the comments!