Judge trims claims but allows Disney class action over ESPN streaming fees to proceed
YouTube subscribers filed a class action antitrust lawsuit against The Walt Disney Co ., alleging it unlawfully uses its power in the media industry to control competing streaming services , which drive up subscription costs on platforms such as YouTube .
Through its ownership and control of Hulu , the second largest streaming service in the United States that includes a live-TV streaming option , the 85-page complaint alleges Disney leverages a “ horizontal , anticompetitive ” advantage for ESPN and ESPN-related channels . Disney also owns ABC and 21st Century Fox .
The lawsuit accuses Disney of controlling pricing power over the entire live TV streaming market in two ways :
• Disney ’ s carriage agreements require that base or lowest-priced bundles offered to streaming services must include ESPN
• Disney ’ s carriage agreements include “ Most Favored Nation ” clauses that put upward price pressure on every rival live pay television streaming product
The plaintiffs say prices across the live paid television market have doubled since Disney acquired Hulu in 2019 . It also claims Disney caused YouTube TV subscriptions to nearly double , from $ 35 per month to $ 65 per month , when Disney required that ESPN be included in the package .
ESPN , according to an article on Yahoo Finance , is said to be the most expensive channel on basic cable and
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streaming plans , with some estimates pricing it at $ 9 or more per month . The plaintiffs allege that Disney requires streaming services to carry ESPN in its lowest-priced bundles , amounting to what the plaintiffs call an “ ESPN tax .” “ Customers that left cable and satellite TV in favor of an ( streaming ) product in order to escape mandatory high-cost channels in their cable or satellite base package are faced with the same inefficient and unwanted product in the ( streaming ) market ,” the YouTube TV class action states . Consumers who don ’ t want to pay for ESPN have no way to opt out , according to the complaint .
The lawsuit says that after taking control of Hulu in 2019 , Disney immediately raised the price of Hulu ’ s Live TV offering by $ 10 per month , bringing the cost of the base package to $ 54.99 . The complaint says other competing platforms followed suit . Within months , AT & T streaming increased $ 15 , PlayStation Vue shuttered , Sling TV increased its subscription by $ 5 per month , YouTube raised prices by $ 15 per month and , one year later , Disney raised the price of Hulu live TV by an additional $ 10 per month .
With each increase , Hulu + Live TV further approached the average cost of traditional basic cable and satellite subscriptions , the YouTube TV class action claims .
Tesla announces recall for 1.8M + vehicles due to potential hood latch defect
Tesla is recalling more than 1.8 million of its vehicles due to a defect that can cause the hood on the vehicles to be open without drivers getting a notification .
The recall was published to the National Highway Traffic Safety Administration website on July 24 . It applies to 1,850,363 vehicles , including the following models :
• 2013-2024 Tesla Model S
• 2016-2024 Tesla Model X
• 2017-2024 Tesla Model 3
• 2020-2024 Tesla Model Y
According to the recall notice , after a customer action opens the hood , the latch assembly may not detect an open condition . This may prevent driver notification of the “ hood open ” state when the vehicle is placed into drive , it says .
“ Unknowingly driving a vehicle with an unlatched hood may result in the hood fully opening and obstructing the driver ’ s view , increasing the risk of a collision ,” the recall warns .
On March 25 this year , Tesla began investigating customer complaints of unintended hood opening events on Model 3 and Model Y vehicles in China .
On July 17 , out of an abundance of caution while all studies into the engineering issue continue , Tesla decided to voluntarily recall the affected vehicles . As of July 20 , 2024 , Tesla has identified three warranty claims or field reports for U . S . vehicles that are related to the issue , it said .
The automaker is not aware of any crashes , injuries , or deaths related to this defect , it said .
Beginning on June 18 , at no cost to customers , affected vehicles received an over-the-air software remedy .
Meanwhile , last month , Tesla issued a recall for more than 11,000 of its model year 2024 Tesla Cybertruck vehicles over concerns a cosmetic applique affixed to the exterior of the vehicles ’ trunk bed rim may not have been installed correctly .