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Disney Hit with Class-Action Lawsuit Tied to Canceled Sports App

Disney’s ambitions to dominate the sports streaming world have faced a rocky road. What began as a promising partnership with Fox Sports and Warner Bros. Discovery to launch a cutting-edge sports app called Venu has culminated in a surprising class-action lawsuit.

The legal challenge, brought forward by a Fubo subscriber, has reignited debates about antitrust concerns in the streaming industry.

FuboTv
Credit: Fubo

Related: Major Lawsuit Could END Historic Disney Merger

The Venu Venture: A Brief History

In 2024, Disney, Fox Sports, and Warner Bros. Discovery announced an ambitious project to create a comprehensive sports streaming platform for fans. The app, dubbed Venu, promised access to content from the NBA, MLB, NFL, PGA, and more. For sports enthusiasts, this seemed like the ultimate solution, consolidating multiple leagues under one digital roof.

However, not everyone was thrilled. Fubo, a competitor in the streaming market, filed a lawsuit shortly after the announcement.

Launched in 2015, Fubo had carved a niche for itself as a leading sports streaming service. The company alleged that Disney’s collaboration with Fox Sports and Warner Bros. Discovery would create a monopoly, violating antitrust laws.

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Credit: ESPN

Related: Despite $8.5 BILLION Merger, Disney’s Streaming Will Take a Hit

Legal Roadblocks and a Merger Twist

A judge initially sided with Fubo, issuing an injunction that prevented Disney and its partners from moving forward with the project. But in early 2025, Disney surprised many by purchasing a 70% controlling interest in Fubo.

This unexpected merger seemed to signal the end of hostilities and offered renewed hope for the Venu app’s development.

That hope was short-lived. Just days after the merger was finalized, Disney announced the cancellation of Venu. Rumors swirled that the Department of Justice had been closely monitoring the project for potential violations of antitrust laws, which may have influenced the decision.

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Credit: Disney/ESPN

Related: Future of Cable TV in Jeopardy as ESPN Moves Live Sports to Streaming Platforms

A New Legal Battle Emerges

While the Venu app may be off the table, legal troubles for Disney persist.

A Fubo subscriber, Cole Unger, has filed a lawsuit in the U.S. District Court for the Southern District of New York, accusing Disney of engaging in anti-competitive practices.

According to a report from Deadline, Unger’s lawsuit alleges Disney conducted a “multifaceted campaign to suppress competition in the market for live television streamed over the internet to paying subscribers.”

SportsCenter
Credit: ESPN

The suit claims Disney leveraged its ownership of ESPN, a dominant force in sports broadcasting, to pressure streaming services:

“Disney’s ownership of ESPN, which dominated the market for broadcast licenses from the major professional sports associations, enables it to extract monopoly rents in the SLPTV market via anti-competitive tactics including… forcing streaming services to carry Disney’s non-ESPN content in order to access ESPN [and] forcing streaming services to include ESPN, the nation’s most expensive content channel, as part of their base—or cheapest—package for consumers.”

Disney Fox Warner sports team up walt disney company department of justice
Credit: ESPN

What’s at Stake?

Unger is seeking damages, including actual damages, treble damages, and coverage of legal costs. However, legal experts suggest the case may face challenges. Since Disney ultimately canceled Venu and the merger didn’t result in a functioning monopoly, a judge might rule that no tangible harm occurred. Without evidence of damages, the lawsuit could be dismissed.

This case highlights the growing tension in the streaming industry, where consolidation and competition are reshaping the landscape. Disney’s control of ESPN has long been a point of contention, with critics arguing that bundling practices disadvantage both competitors and consumers.

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Credit: Disney

As the legal proceedings unfold, the case serves as a reminder of the fine line between innovation and monopolization in the digital age. Whether Unger’s lawsuit will gain traction remains to be seen, but the spotlight on Disney’s practices is unlikely to dim anytime soon.

What do you think about Disney’s approach to sports streaming? Does Unger have a valid case, or is this legal action unwarranted? Share your thoughts in the comments below!

Krysten Swensen

A born and bred New England girl living the Disney life in Southern California. I love to read, to watch The Golden Girls, and love everything to do with Disney and Universal. I also love to share daily doses of Disney on my Disney Instagram @BrazzleDazzleDisney!

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