A California federal judge has allowed an antitrust lawsuit against Disney to proceed, claiming that Disney’s streaming services engaged in anti-competitive behavior. Subscribers of YouTube TV allege that Disney’s inclusion of ESPN in base packages inflated the cost of their subscriptions. The lawsuit also alleges antitrust violations due to Disney’s control of content and distribution, which presents a barrier to market entry.

Judge Edward Davila approved the lawsuit while rejecting pricing-related complaints. He agreed that Disney’s practices hindered potential competition in the streaming market, requiring new entrants to contract with Disney for certain channels. This suggests Disney wields significant market power in the streaming industry.

The article notes Disney’s efforts to cut Disney+ subscription prices temporarily to attract budget-conscious consumers. It also mentions Disney’s losses on recent box office releases and its reputation for incorporating a political agenda into its content, which has alienated some conservative audiences.

These developments raise questions about Disney’s role in the streaming and entertainment industry.