The legal wrangle between media and entertainment giant Disney and the Dish Network continues, with the latter having now filed counterclaims against Disney and its ESPN sports network.
Specifically, Dish filed federal antitrust and breach of contract claims against both the Walt Disney Co. and ESPN on January 2 in the US District Court for the Southern District of New York.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Dish is responding to the original suit filed by Disney in late August, in which Disney sued Dish-owned Sling TV, the over-the-top streaming platform, for including Disney's networks in short-term packages for Sling customers, without Disney's permission.
In November, a judge ruled for Dish on this matter and rejected Disney's request that those short-term packages be blocked, only for Disney to then amend and refile its suit.
Sling offers passes for one day, three days, or one week that include both live and on-demand access to Disney networks, including ESPN.
Now, Dish has responded by claiming that Disney is itself breaking antitrust laws, is using its position as a market heavyweight to "destroy competition," and has "flagrantly" breached the terms of its own contracts.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe lawsuit also claims that Disney has given Dish competitors more favorable contract terms, despite carriage agreement clauses – specifically, a 'Most Favored Nation' clause – requiring it to do so.
The countersuit has been submitted to secure monetary compensation, as well as a ruling that Disney and ESPN have broken US antitrust laws, and also an injunction to unwind Disney's acquisition of US-based sports-focused OTT and internet television platform Fubo (which, Dish claims, violates the US Sharman Antitrust Act of 1890).
Dish has alleged that the Disney acquisition of Fubo violates antitrust laws by removing competition, and that the move means Disney "hoards consumer-friendly sports options for itself and blocks alternative skinny bundles."
In addition, Dish has claimed that Disney is looking to completely corner what it calls the "skinny sports bundle market" by launching the ESPN Unlimited streaming service, as well as through the Fubo deal.
Dish's filing alleges that Disney's actions mean Sling is forced to "carry content customers don't want, inflating costs and blocking affordable packaging."
In a response statement made to the media, meanwhile, Disney said: "Dish’s counterclaims have no merit and are nothing more than a tactic to distract from their own misconduct, and we look forward to vindicating our position in court.”
In denying Disney's original motion last year, the US federal judge said that Disney had not managed to prove that Sling's streaming passes threatened the ESPN app's content in any quantifiable way.
Following Disney's filing suit in August, media giant Warner Bros. Discovery did the same in September.
