On Friday, U.S. District Judge Margaret Garnett blocked the launch of a new sports streaming service, Venu Sports, which was set to debut later this month, stating that the service would "substantially lessen competition and restrain trade."

The decision came after the streaming service Fubo filed a lawsuit against Warner Bros. Discovery, Fox Corp., and Disney earlier this year. Fubo's legal team argued that Venu Sports was anti-competitive, as it forced services like Fubo to pay for a broad bundle of general entertainment channels without the option to selectively distribute only the sport-centric channels. This bundling practice, Fubo claimed, unfairly disadvantaged smaller distributors who could not compete with the comprehensive offerings of Venu Sports.

Venu Sports was designed to be a sports-only streaming service, offering a wide array of channels that broadcast major sporting events, including games from the NBA, MLB, NFL, and various college teams. The service, priced at $42.99 per month, was aimed at sports fans who have cut the cord on traditional cable subscriptions.

Fubo CEO David Gandler hailed the court's ruling as a victory for the company and consumers. "This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options," Gandler said.

In response, the three media companies—Warner Bros. Discovery, Fox, and Disney—announced plans to appeal the ruling. "Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options," the companies said in a joint statement.