In a significant development, a federal judge in New York has granted Fubo's request to block Venu Sports, a planned sports bundle of Disney, Fox Corp., and Warner Bros. Discovery channels. Fubo, a middle-of-the-pack pay-TV provider with a focus on sports, filed a lawsuit in February, accusing Venu of being a product of a monopolistic "cartel" aiming to crush competitors in the market.

U.S. District Judge Margaret Garnett issued a ruling on Friday, granting a preliminary injunction after several days of testimonies from high-level executives in the media business. Judge Garnett highlighted that the case centered around the crucial and irreplaceable revenue and power generated through the broadcast of live sports. She stated that a preliminary injunction is one of the most powerful tools to safeguard against anticompetitive behavior.

The judge acknowledged that the launch of the Venu Sports joint venture would eliminate any potential threat from direct competitors, creating a monopolistic runway for the companies involved. This, she argued, would lead to increased prices for consumers and hinder competition. Judge Garnett emphasized that antitrust injunctions aim to prevent the formation of anticompetitive incentives, ensuring that American consumers are not left to rely solely on the word of the defendants.

Expressing strong disappointment, the Venu partners released a joint statement disagreeing with the court's ruling and announcing their intention to appeal. They argued that Fubo's arguments were flawed and failed to demonstrate that they were entitled to a preliminary injunction. The Venu partners maintained that their offering aimed to enhance consumer choice and cater to viewers currently underserved by existing subscription options.

Fubo, however, intends to continue pursuing its lawsuit, citing broader claims about competition. The main antitrust trial date has yet to be set. CEO David Gandler applauded the ruling as a victory for both Fubo and consumers, asserting that it would foster a more competitive marketplace with multiple sports streaming options. He further accused The Walt Disney Co., Fox Corp., and Warner Bros. Discovery of engaging in anticompetitive practices that monopolize the market and limit consumer choice.

Venu Sports, which was set to launch in the coming weeks, had announced an initial price of $43 per month, significantly lower than Fubo's cheapest plan. Fubo alleges that it was forced to take on additional non-sports channels from the three companies to gain access to sports offerings, resulting in higher prices for consumers. The ruling had an immediate impact on Fubo's stock, which soared almost 18% during the trading day.

As Fubo's legal battle against Venu Sports unfolds, the spotlight remains on the evolving landscape of sports streaming and the influence of major media conglomerates. The outcome of this case may have far-reaching implications for the future of competition in the industry and the choices available to sports enthusiasts.