Sports streaming platform FuboTV has taken legal action against entertainment giants Disney, Fox, and Warner Bros. Discovery, as reported by CNBC. The lawsuit alleges that the recently announced joint venture among the companies will lead to "extreme suppression of competition" in the U.S. sports-focused streaming market.

The joint venture, scheduled for a fall rollout, aims to provide viewers with new avenues to access premium live sports content. However, doubts linger regarding pricing and the overall structure of the collaborative effort. FuboTV CEO David Gandler criticized the move, claiming that the companies are colluding to create a venture that will harm competition and consumers.

In response to the lawsuit, Disney-owned ESPN and Hulu have also been named as defendants. FuboTV argues that Disney, Fox, and Warner Bros. have historically engaged in anticompetitive practices, leading to monopolistic behaviors and higher pricing for consumers.

The legal complaint alleges that the media conglomerates, who control a substantial share of live sports content in the U.S., have imposed bundling requirements and inflated licensing fees on FuboTV in the past. The lawsuit further claims that the new joint venture allows these companies to undercut prices and evade restrictions on channel offerings, giving them an unfair advantage in the market.

The joint venture has already caused concerns within the traditional pay-TV sector, with leading distributors expressing worries that the new offering could lead to increased cable TV cancellations. Analysts, including Craig Moffett of MoffettNathanson, anticipate potential antitrust challenges as a result of the collaboration.

A spokesperson for the joint venture declined to comment on the lawsuit, marking the beginning of a legal battle that could reshape the landscape of sports streaming in the U.S.