Disney is no stranger to lawsuits, and we finally have an update on one that could impact you.

©Disney | Walt Disney Company Headquarters

Back in November 2022, we learned that YouTube TV subscribers had brought a class-action lawsuit against Disney alleging that the company’s ownership of ESPN and Hulu has caused them to pay MORE for their subscriptions than they otherwise would have to if ESPN wasn’t part of the base package. Disney previously filed a motion to dismiss the case, and here’s how that’s going.

Disney is currently being sued in a class-action consumer antitrust case. The allegations focus on Disney’s ownership of ESPN, which is part of the base package for a YouTube TV subscription.

©Disney

The Plaintiffs claim that Disney’s ownership of ESPN has given the Company the power to “set a price floor” when it comes to TV streaming. Specifically, they allege that they’re paying MORE for their subscriptions than they otherwise would have to if ESPN wasn’t part of the base package. 

Disney tried to get the case tossed out by filing a motion to dismiss in early 2023, but now we know the judge has ruled against Disney in this particular instance. 

©Disney

According to Deadline, Judge Edward J. Davila denied Disney’s request, saying, “The Court once again finds Plaintiffs’ allegations sufficient to plead Disney’s market power in a well-defined SLPTV market in the United States.” Disney’s attorneys have argued that the plaintiffs who filed the suits “misconstrue basic antitrust and economic concepts.”

©ESPN

Judge Davila will allow the case to move forward but has cut any attempt at damages from the suit. Instead, Disney faces the possibility of injunctions that could stop them from engaging in antitrust violations in the future. In Disney’s motion to dismiss, they claim the suit fails to show “a relevant antitrust market in which competition was harmed” and that “the antitrust laws exist to protect competition, not individuals.”

©Disney

“Because Plaintiffs have specifically alleged that the terms of the MFN provision permit Disney to set a price floor and raise its competitors’ ESPN prices (which translate to the subscription package prices) whenever it raises Hulu’s prices, the Court finds Plaintiffs’ allegations sufficient to plead Disney’s market power in a well-defined SLPTV market in the United States,” Judge Davila said in his ruling.

©Hulu

As of now, Disney hasn’t commented on the Judge’s latest ruling. We’ll continue to keep an eye out for updates on this situation, so stay tuned to the Disney Food Blog for more.

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