DirectTV, one of America’s biggest multichannel video programming distributors, has filed an antitrust lawsuit against Disney for wrongfully negotiating a football deal. The company filed a formal complaint with the FCC (Federal Communications Commission), alleging that Disney did not negotiate in good faith.
A spokesperson for DirecTV said that Disney had breached the FCC’s good faith requirements by making any licensing agreement contingent upon DirecTV waiving legal claims regarding Disney’s previous, current, or future anti-competitive practices, including its ongoing bundling and minimum penetration demands.
As a result, Disney has blacked out many DirecTV users from viewing Disney channels like ESPN, ABC, and more. This blackout came ahead of the upcoming presidential debate between Democrat Kamala Harris and Republican Donald Trump. Moreover, the US Open and the opening of the NFL will also witness a lower viewership because of this.
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A Disney Spokesperson stated in the matter, “We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football.”
Six major markets have been affected by this decision by Disney, including New York, Los Angeles, Chicago, Philadelphia, Houston, and San Francisco. A few smaller markets will also be affected, which include Fresno, California and Raleigh, North Carolina.