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Class-Action Lawsuit Targets Disney, Despite Cancellation of Sports Streaming App

In 2024, Disney partnered with Fox Sports and Warner Bros. Discovery to introduce Venu, a groundbreaking sports app that aimed to bring together major leagues like the NBA, NFL, MLB, and PGA under one digital platform. The project promised a seamless experience for sports fans, consolidating content from multiple leagues into a single app.

But trouble arose when Fubo, a leading sports streaming service, challenged the project, accusing Disney and its partners of violating antitrust laws. The initial legal battle resulted in a judge issuing an injunction to halt Venu’s development. This decision marked the beginning of a complicated legal saga.

FuboTV
Credit: Fubo

Related: The Streaming Industry Fights Changes To Keep You Paying More

Disney’s bold attempt to transform the sports streaming industry has taken a dramatic turn. After initially announcing an ambitious collaboration to create the Venu sports app, the entertainment giant now finds itself at the center of a class-action lawsuit.

The lawsuit, spearheaded by a Fubo subscriber, alleges anti-competitive practices that could have far-reaching implications for the streaming market.

Disney’s Surprising Merger Move

In early 2025, Disney took an unexpected step by acquiring a 70% controlling interest in Fubo. The merger seemed to resolve tensions between the companies and raised hopes for the revival of Venu.

A logo for Venu sports
Credit: Venu

However, just days after finalizing the acquisition, Disney abruptly announced that the Venu app had been canceled.

The sudden cancellation raised eyebrows, with speculation pointing to potential scrutiny from the Department of Justice. Concerns about antitrust violations may have played a significant role in Disney’s decision to abandon the project.

The Class-Action Lawsuit

Despite the Venu app’s cancellation, Disney’s legal troubles are far from over.

Monday Night Football
Credit: ESPN

Related: Streaming Service Faces Backlash Over Content Removals on Disney+

Fubo subscriber Cole Unger has filed a lawsuit in the U.S. District Court for the Southern District of New York, alleging that Disney engaged in anti-competitive practices. The lawsuit claims Disney used its dominant position in sports broadcasting to suppress competition in the streaming market.

A report from Deadline sheds light on the details of the case:

“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.”

Related: Disney Drops Surprising News About Its Streaming Service: Here’s How It Will Affect Subscribers

Unger’s lawsuit seeks damages, including actual and treble damages, as well as coverage for legal costs.

Goofy, Minnie Mouse, Mickey Mouse, Donald Duck, and Pluto are dressed in sports gear, energetically posing in front of the ESPN Wide World of Sports Complex globe at Disney World. The scene is lively and colorful with palm trees swaying nearby, reminiscent of a Tampa Bay Rays celebration.
Credit: Disney

Challenges Ahead for the Plaintiff

While the lawsuit raises important questions about competition in the streaming industry, legal experts suggest the case may face significant hurdles. Disney’s decision to cancel Venu could undermine claims of tangible harm. Without clear evidence that Disney’s actions directly disadvantaged consumers or competitors, the lawsuit may struggle to gain traction.

As the lawsuit progresses, the spotlight remains on Disney’s approach to streaming. The outcome could set a precedent for how major players navigate antitrust concerns in an increasingly competitive digital landscape.

What’s your take on Disney’s canceled Venu app and the ensuing lawsuit? Do you think Cole Unger has a strong case, or is this legal challenge 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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