Venu temporarily blocks sports streaming service, siding with Fubo on antitrust concerns.

• On Friday, a U.S. judge temporarily halted the launch of sports streaming service Venu before the start of the NFL season.
• ESPN, Fox, and Warner Bros. Discovery collaborated to establish the joint venture.
• It was set to cost $42.99 a month.
• Fubo, an internet TV bundle provider, filed a lawsuit alleging that the venture was anticompetitive and would negatively impact its business.

According to court filings, a U.S. judge temporarily halted media companies and from launching their sports streaming service, Venu.

The temporary restraining order, issued due to a lawsuit filed by, was granted just before the start of the National Football League season, which had been the planned launch date for the companies' service.

Fubo, a bundle of internet TV services similar to traditional pay TV, claimed in its lawsuit that Venu was engaging in anticompetitive behavior and threatened to disrupt its business. As a result, Fubo's stock price increased by 16% on Friday following the news of the injunction.

Fubo CEO David Gandler stated in a press release that today's ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.

In February, Warner Bros. Discovery, Fox, and Disney's ESPN announced the formation of a joint venture streaming service. However, Fubo filed an antitrust lawsuit against the venture shortly after.

Fubo announced its intention to proceed with its antitrust lawsuit against the companies for their anticompetitive practices on Friday. In recent months, several lawmakers, including Sen. Elizabeth Warren, Sen. Bernie Sanders, and Rep. Joaquin Castro, have urged the scrutiny of Venu.

On Friday, ESPN, which is owned by Warner Bros. Discovery and Fox, stated that they respectfully disagree with the court's ruling and are appealing it.

"Fubo's arguments are incorrect on both facts and law, and the company has not demonstrated its entitlement to a preliminary injunction. Venu Sports is a competitive alternative that aims to increase consumer choice by catering to a segment of viewers not served by existing subscription options."

Earlier this month, Venu announced pricing of $42.99 per month.

The service would provide NBA, NHL, MLB, college football and basketball, among other live sports rights owned by its parent companies. Additionally, Venu subscribers would have access to 14 traditional TV sports networks of its parent companies, including ESPN, ABC, Fox, TNT and TBS, as well as the streaming service ESPN+.

The high cost of streaming live sports is typical and does not disrupt any agreements with traditional pay TV providers.

In her court documents, U.S. Judge Margaret Garrett pointed out that the three companies have a combined control of approximately 54% of all U.S. sports rights and at least 60% of nationally broadcast U.S. sports rights.

In court papers, Garrett stated that there is substantial proof that the actual numbers could be greater.

Garrett stated that although Disney, Fox, and Warner Bros. Discovery compete against each other for sports telecast rights and viewership, when combined, they are dominant in live sports licensing.

Besides CBS and NBC, streaming platforms like Prime Video are also major holders of U.S. sports rights.

Venu's marketing strategy had focused on attracting sports fans who were not part of the traditional pay TV package.

In the past week, a multi-day hearing took place, during which Fubo's representatives, as well as DirecTV and Dish, who also offer competing internet TV bundles and supported Fubo in the lawsuit, argued that the streaming bundle would harm their businesses.

An attorney representing Warner Bros. Discovery informed the judge during the hearing that an injunction would put an end to Venu.

EchoStar's EVP of government and external affairs, Jeff Blum, stated that this ruling is a significant triumph for consumers and competition in the video marketplace.

DirecTV expressed satisfaction with the court decision, stating that it accurately acknowledges the risks of granting major programmers preferential licensing terms to their affiliated distributors over third parties.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.