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A US judge has temporarily blocked the launch of a sports streaming service founded by Disney’s ESPN, Warner Bros and Fox because it would likely “substantially reduce” competition in the market.

The service, called Venu, was supposed to launch later this year, but FuboTV, a streaming platform specializing in sports, filed an antitrust lawsuit in February to block the service, arguing that it would cause “irreparable harm.”

On Friday, U.S. District Judge Margaret Garnett in New York issued a temporary restraining order to stop the service from launching while Fubo’s lawsuit against the entertainment giant plays out in court.

The ruling was kept secret, but the judge noted in an entry in the court record that Fubo was “likely to succeed on its claims” because by entering into the agreement the companies would “substantially lessen competition and restrict trade in the relevant market,” which would violate antitrust law.

ESPN, Fox and Warner Bros Discovery said in a statement that they plan to appeal the decision.

Venu was aimed at U.S. consumers who had either abandoned their traditional pay-TV packages in favor of streaming services or never signed up for cable. Cord cutting has been eroding the traditional TV business for years, but live sports remains a major draw for customers who have held on to their cable subscriptions.

Fubo TV launched in 2015 as a sports-focused streamer. The company offers more than 350 channels – including those covering major sporting events such as Premier League soccer matches, baseball, the National Football League and the U.S. National Basketball Association – with monthly subscription prices starting at $79.99. Its offerings also included channels from Disney and Fox.

ESPN, Fox and Warner Bros said Venu was “pro-competitive” and aimed to “reach viewers not currently served by existing subscription options.”

When Venu launches later this month, it will cost $42.99 per month. “It will have just 15 channels, all featuring popular live sports – the kind of stripped-down sports package that Fubo has been trying to offer for nearly a decade, only to be met with fierce resistance,” Fubo said in a court filing seeking the injunction.

Analysts estimated that Venu would amass around $16 billion worth of sports rights, but this is unlikely to impact the individual companies’ ability to sign new rights deals.

Analysts had questioned the broadcaster’s market position. Disney plans to launch ESPN in August 2025 as a “flagship” streaming service that will offer both the programming shown on television as well as games, shopping and other interactive content. Disney CEO Bob Iger said he wanted to make the service the “preeminent digital sports platform.”

Following the ruling, Fubo’s shares rose 16.8 percent, but this year they have fallen 51 percent.