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DirecTV Files FCC Complaint Against Disney Alleging Anticompetitive Practices

DirecTV Files FCC Complaint Against Disney Alleging Anticompetitive Practices
  • PublishedSeptember 9, 2024

Satellite TV provider DirecTV has filed a formal complaint with the US Federal Communications Commission (FCC), accusing Walt Disney Company of engaging in anticompetitive behavior and failing to negotiate in good faith during discussions to renew their distribution agreement.

According to DirecTV, Disney has imposed unreasonable conditions, including bundling and penetration demands, which a federal court recently deemed unlawful.

At the center of the dispute is Disney’s insistence on a “fat bundle” of channels, forcing DirecTV to offer less popular programming while Disney sells cheaper, “skinnier” packages to consumers. DirecTV contends that these practices hurt consumers and restrict their ability to provide more flexible, lower-cost options.

The complaint, filed on Saturday night, comes as the two companies remain at an impasse, which has already affected more than 11 million DirecTV subscribers. The blackout, which began on September 1, has cut access to Disney-owned channels such as ESPN and ABC, leaving DirecTV customers without key programming ahead of major events like the NFL season and the US Open tennis tournament.

In its complaint, DirecTV accused Disney of violating FCC mandates by demanding legal protections that would prevent DirecTV from filing future antitrust claims, including those related to packaging requirements. The company has called for the option to offer more customizable channel bundles without being forced to include ESPN, a strategy it believes would benefit consumers.

Disney responded by stating that it continues to negotiate with DirecTV and urged the satellite provider to finalize a deal that prioritizes its customers.

“We continue to negotiate with DirecTV to restore access to our content as quickly as possible,” a Disney spokesperson said.

This standoff highlights the broader debate over the future of bundled programming in the streaming era. DirecTV is pushing for more consumer-friendly packages, while Disney aims to protect its flagship networks, including ESPN, which holds significant value in sports broadcasting.

The conflict has affected ABC-owned stations in key markets such as New York, Los Angeles, and Chicago, along with ESPN’s suite of channels, FX, and National Geographic. The ongoing blackout may continue to impact DirecTV subscribers unless a resolution is reached soon.

With input from CNBC, CNN, Reuters, and New York Post.