DirecTV Files FCC Complaint Accusing Disney of Negotiating in Bad Faith as Blackout Continues

DirecTV filed a complaint against Disney on Saturday with the Federal Communications Commission amid the ongoing dispute over content carriage negotiations between the satellite cable provider and the studio. DirecTV alleges that Disney “has failed to negotiate in good faith,” according to a statement from the service.

“Disney has violated the FCC’s good faith mandates by predicating any licensing agreements on DIRECTV’s waiving any legal claims on Disney’s past, current, or future anticompetitive actions, including its ongoing packaging and minimum penetration demands,” a DirecTV spokesperson said in a statement.

In its own statement, Disney responded to the complaint, “We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football.”

DirecTV laid out its reasons for filing in the FCC complaint, arguing Disney is negotiating in bad faith, including invoking Disney’s joint proposed Venu streaming service focused around sports programming that has been held up due to an injunction following a suit brought by streaming provider Fubo.

“The negotiations have stalled because Disney insists on bundling and penetration requirements that a federal district court judge in New York recently found in the context of the ‘Venu’ joint venture to be unlawful, anticompetitive, and ‘bad for consumers,'” the complaint reads. “Disney wants to force DIRECTV to carry a ‘fat bundle’ including less desirable Disney programming — while itself offering cheaper, ‘skinnier’ bundles of programming that consumers want. The Commission has never considered a good faith complaint in these circumstances, and DIRECTV may well wish to bring one in the future concerning Disney’s conduct.”

“Along with these anti-competitive demands, Disney has also insisted that DIRECTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DIRECTV from taking legal action regarding Disney’s anticompetitive demands, which would include filing good faith complaints at the Commission,” DirecTV notes in its complaint. “Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”

While the satellite provider is taking issue with the agreement not to sue at this point, Disney and DirecTV have agreed upon “clean slate” provisions as part of previous deals between the companies.

DirecTV’s complaint opens by squarely pointing to the big sticking point in the negotiations which have grown contentious as sports increasingly become the driving force behind the continued life of cable providers.

“DIRECTV subscribers nationwide have lost ESPN and other Disney sports and entertainment programming, and subscribers in eight of the nation’s largest markets have lost Disney-owned television stations as well,” the complaint begins. “In addition, subscribers to DIRECTV’s streaming services have lost ABC stations not owned by Disney itself. Thus, millions of Americans have already missed early college football games, may well miss the first Monday Night Football game, and, if the impasse lasts, will miss the presidential debate, produced and hosted by ABC.”

However, in a statement, the satellite provider also notes that, while Disney’s ABC itself is unavailable on DirecTV at the moment due to the dispute, the debate between Kamala Harris and Donald Trump will be available on DirecTV via several other stations that have picked up the programming.

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