States' Attorneys General, coupled with the Justice Department, submit briefs in backing Fubo's lawsuit against Venu.

In a recent development, the owners of sports streaming service Venu have appealed a decision that would block the service's launch, following a preliminary injunction issued by U.S. District Court Judge Margaret Garnett in Manhattan in August. The injunction was a result of an antitrust lawsuit against Venu.

The Justice Department and 17 state attorneys general have filed briefs in the 2nd U.S. Circuit Court of Appeals opposing the appeal, aiming to maintain the preliminary injunction against the launch of Venu. The attorneys general's brief, filed by state AGs from New York, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington, as well as the District of Columbia, defended the injunction by arguing that Venu's joint venture violates § 7 of the Clayton Act.

The Clayton Act, a 1914 law passed to curb antitrust practices, is at the heart of the dispute. The attorneys general contend that Venu's joint venture substantially lessens competition in the relevant market. On the other hand, the Justice Department argues that Venu improperly grounded its analysis in bundling practices predating Venu rather than focusing on the competitive effects of the transaction itself.

Interestingly, the attorneys general's brief did not contest the DoJ's contention that Venu's argument that providing consumers an additional option at a lower price is unambiguously a pro-consumer outcome that cannot violate the Clayton Act is wrong. Similarly, the brief did not express any opinion on the DoJ's argument that the owners' arguments to lift the appeal are a red herring and likely misplaced.

The appeal by Venu's backers aims to lift the injunction against the launch of the sports streaming service, which would delay operations until the case goes to trial in October of 2025. The attorneys general's brief did not indicate any change in the scheduled District Court trial in October of 2025.

Analyst Richard Greenfield of Lightshed Partners wrote that the filings by the Justice Department and state attorneys general reduced the odds that the injunction against the service would be lifted quickly. He also noted that it will be interesting to see if the filings lead to greater questions around bundling practices more generally.

Notably, Germany, Austria, and Switzerland have supported the preliminary injunction against the launch of Venu Sports by signing a letter opposing the appointment of Venu Sports' backers. However, the attorneys general's brief did not mention any potential change in the stance of the new DoJ leadership in 2025 regarding Venu.

As the case progresses through the 2nd U.S. Circuit Court of Appeals, the fate of Venu's launch remains uncertain. The outcome could have significant implications for the sports streaming industry and antitrust laws in the United States.

States' Attorneys General, coupled with the Justice Department, submit briefs in backing Fubo's lawsuit against Venu.