In a recent development, the U.S. Department of Justice (DOJ) is reportedly planning to closely examine a sports streaming platform that is being launched by Walt Disney, Fox, and Warner Bros Discovery. According to a report by Bloomberg Law, the DOJ is concerned that this joint venture could have negative implications for consumers, sports leagues, and rival companies.

Earlier this month, the three media companies announced their collaboration and intention to launch a sports streaming service in the coming autumn. The platform aims to attract younger viewers by offering non-exclusive access to a range of television sports networks, including ESPN, Fox Sports 1, and TNT, as well as streamed content.

The DOJ's interest in scrutinizing this partnership stems from the potential competition issues and antitrust concerns raised by the convergence of major players in the online distribution of sports. Seth Bloom, an antitrust lawyer and former general counsel of the Senate Antitrust Subcommittee, expressed his opinion on the matter, stating that the DOJ would likely investigate the competitive implications and evaluate whether other companies would be excluded from the market.

Fubo, a sports-focused streaming service, had already called for scrutiny of the joint venture soon after it was announced. Fubo claimed that the media partners involved commanded a significant market share, reportedly controlling between 60% to 85% of all sports content. The company emphasized the importance of fair competition and expressed concerns about the impact this partnership could have on the market.

Both Fox, Warner Bros Discovery, and Disney have not yet responded to requests for comment on this matter. The DOJ declined to comment as well, further highlighting the early stages of this review process.

Interestingly, Disney has additional plans for the streaming market, as it also aims to launch a standalone streaming version of ESPN in autumn 2025. This platform would incorporate digital features, such as sports betting, fantasy sports, and e-commerce. Disney CEO Bob Iger highlighted the unique nature of the digital ESPN offering, describing it as a comprehensive "one-stop sports destination."

As the DOJ initiates its review, the future of the joint venture's sports streaming platform becomes uncertain. This evaluation will play a crucial role in determining the extent to which competition in the sports streaming industry will be impacted.

It remains to be seen how this investigation will unfold and what measures may be taken to address any potential competition concerns.