An antitrust lawsuit has been filed against media giants, including The Walt Disney Co., Fox Corp., and Warner Bros. Discovery, over their collaboration on a new sports streaming platform. The lawsuit, filed in New York federal court on Tuesday, alleges that Fubo, a rival sports streamer, is being unfairly pressured to carry expensive non-sports channels to access sports rights from the companies.

The untitled streaming platform, set to launch this fall, will feature live linear channels such as ESPN, Fox, ABC, TNT, and TBS, as well as sports rights from all three companies. Fubo's lawsuit accuses the media giants of using their dominance in sports content to generate excessive profits, ultimately leading to higher costs for consumers. The suit claims that Fubo has been charged content licensing rates up to 50% higher than other distributors, forcing them to pass on these costs to customers.

Fubo's CEO, David Gandler, criticized the companies for engaging in anticompetitive practices that limit market entry and increase pricing for subscribers. Following the announcement of the collaboration, Fubo's stock dropped more than 25%, with concerns raised about potential violations of antitrust laws.

The platform's exclusivity in offering a specialized live sports package has raised apprehensions about unfair market competition and consumer choice. The companies have faced scrutiny for reportedly controlling a significant portion of sports content, which could allow them to dictate market terms in a manner that may not benefit consumers.

Fox and WBD have not yet responded to requests for comment, while Disney and ESPN declined to provide a statement regarding the lawsuit. The lawsuit seeks to block the joint venture and highlights growing concerns over the impact of monopolistic practices in the sports streaming industry.