DirecTV accuses Disney of 'bad faith' negotiations in FCC complaint ahead of Trump-Harris debate (UPDATED) – AT&T (NYSE:T), Walt Disney (NYSE:DIS)

Editor's note: This story has been updated with commentary from a Disney spokesperson.

The ongoing feud between pay-TV providers, DirecTVowned by AT&T Inc. TAnd TPG Capital And Disney Store DIS on a new transport contract has taken a new turn.

What happened: On Saturday, DirecTV filed a complaint against Disney with the Federal Communications Commissionand accused the Mouse House of having acted with “bad intentions” during the negotiations.

The dispute between DirecTV and Disney is a two-week-long negotiation over transmission fees that has led to the blocking of Disney channels, including ESPN And ABC-own channels in nine markets, since September 1 on DirecTV.

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DirecTV alleges that Disney is violating the FCC's good faith principles by requiring Disney to waive all legal claims related to anti-competitive practices, including its ongoing packaging and minimum penetration requirements.

But Disney insists that mutual waivers of claims are a common practice after licensing deals are negotiated and agreed to. A Disney spokesperson urged DirecTV to give its customers priority by entering into a deal that restores access to their content, the Associated Press reported.

“We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating distractions and instead put its customers first by making a deal that allows their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football,” a Disney spokesperson said in an email to Benzinga.

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Why it is important: The blackout affected DirecTV's 11.3 million subscribers, preventing them from showing most college football games and the final week of the US Open tennis tournament.

DirecTV subscribers could also watch the presidential debate between Donald Trump And Kamala Harris scheduled for September 10, 2024, 9:00 p.m. EDT.

This development follows DirecTV's move to a streaming model that no longer requires a satellite dish to access content. The company is marketing its pay-TV package that no longer requires a satellite dish.

Meanwhile, Disney reported solid third-quarter results last month, seeing revenue rise 4% year-over-year to $23.16 billion, driven by rising subscription revenue due to price increases and a growing Disney+ Core customer base.

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Image via DirecTV

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Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.