Fox Corp., Warner Bros Discovery Inc. and Walt Disney Co. were sued by FuboTV Inc. over a proposed sports streaming service, saying the companies wouldn’t allow their smaller rival to carry just a bundle of sports channels.

The lawsuit seeks to block a joint venture for the service, saying the three companies are using their power to hinder Fubo’s business, the company said in a statement. Fubo said the companies already charge it licensing rates as much as 30% to 50% higher than other distributors pay and limits the number of subscribers that can buy particular content packages. 

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Disney, Fox and Warner Bros. have “consistently engaged in anticompetitive practices that aim to monopolize the market,” Fubo Chief Executive Officer David Gandler said. “Simply put, this sports cartel blocked our playbook for many years and now they are effectively stealing it for themselves.”

The Justice Department already plans to scrutinize the new product over concerns it will harm consumers, media rivals and sports leagues, Bloomberg News reported last week, citing two people familiar with the process. Regulators will look at terms of the joint venture once it is finalized, the people said.

Disney, Fox and Discovery announced the service earlier this month that would combine content from Disney’s ESPN and ABC networks, Fox, and Warner channels including TNT and TBS. Citi analysts estimated the venture would control about 55% of US sports rights.

The companies’ say they aim to attract viewers who don’t subscribe to a pay-television bundle and offer sports programming available on traditional cable packages.

ESPN and Fox declined to immediately comment while officials at Warner Bros Discovery couldn’t be immediately reached. The Wall Street Journal reported on the lawsuit earlier Tuesday. 

A copy of the lawsuit wasn’t publicly available on the court website.

—Bloomberg News