Newsmax has filed an antitrust lawsuit against Fox News, alleging anti-competitive behavior that has stifled its growth. The suit claims Fox coerces distributors through “exclusionary and restrictive agreements” and uses “intimidation tactics,” harming Newsmax’s ability to gain viewers and advertising revenue. Newsmax is seeking a permanent injunction against Fox’s practices and triple damages, claiming significant financial harm. Fox News has responded, denying the allegations and attributing Newsmax’s struggles to “competitive failures.”
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President Trump’s administration, using the Justice Department’s 2021 antitrust suit against Google, is attempting to exert control over the company’s search engine results and content policies, framing it as a free speech issue rather than a competition matter. This strategy, evidenced by the proposed remedies, would grant Trump appointees extensive access to Google’s internal workings and allow them to favor Trump-aligned competitors. This mirrors Trump’s past actions of installing loyalists and suppressing dissent in other institutions, raising concerns about the potential for biased search results and the weaponization of information. The ultimate decision rests with Judge Mehta, who will determine the extent of Trump’s influence over Google.
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This week’s Tech Drop covers several key technology and politics intersections. Robert F. Kennedy Jr.’s planned autism registry raises serious data security concerns given his controversial views on the condition. Meanwhile, Trump Media is requesting a Trump administration investigation into a hedge fund that shorted its stock. Google faces further antitrust issues, losing a second lawsuit in under a year. Finally, reports highlight ICE’s planned data-gathering tool, Meta’s lobbying efforts against child online safety regulations, and multiple scandals involving Defense Secretary Pete Hegseth’s use of Signal.
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The Japan Fair Trade Commission issued a cease-and-desist order to Google for violating Japanese anti-monopoly law. This unprecedented action targets Google’s practice of requiring pre-installation of its apps on Android phones, hindering competition from rival search engines. This marks the first such order against a GAFAM company in Japan. The commission cited Google’s actions as creating significant barriers to entry for competitors in the Android mobile market.
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Elon Musk’s lawsuit against several major advertisers, alleging antitrust violations for withdrawing advertising from X (formerly Twitter), highlights a contradiction in his professed support for free speech and free markets. The suit claims the advertisers colluded to boycott X due to concerns over its content moderation policies, causing financial harm to the platform. However, this action constitutes a legitimate market response to perceived risks and is a form of protected expression, not an antitrust violation. Musk’s argument contradicts his purported dedication to free market principles by seeking to compel private companies to continue advertising on his platform regardless of their concerns.
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The Justice Department, alongside ten states, is suing six major landlords for allegedly colluding to inflate rents. This alleged scheme involved sharing sensitive pricing data and utilizing an algorithm, RealPage, to coordinate rent increases across 1.3 million units. The landlords are accused of prioritizing profit over affordability, exacerbating the ongoing housing crisis impacting millions of Americans. One landlord has agreed to a settlement, while others deny wrongdoing and plan to vigorously defend themselves. The lawsuit aims to curb anti-competitive practices and make housing more affordable.
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Tyson Foods’ closure of its Dexter, Missouri plant resulted in hundreds of job losses and devastated contract farmers like Shawn Hinkle, who now faces bankruptcy due to unfulfilled contracts. A lawsuit alleges Tyson colluded with Cal-Maine Foods to purchase the plant, preventing competition and forcing farmers into unfavorable new contracts with a non-compete clause. This coordination, along with alleged attempts to intimidate farmers and suppress media coverage, is under scrutiny in ongoing litigation. The lawsuit claims Tyson acted to limit competition and inflate prices, leveraging its considerable market share within the poultry industry.
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In short, Canada’s Competition Bureau is suing Google for alleged anti-competitive practices in online advertising, seeking a court order forcing the sale of two ad tech tools and financial penalties. The Bureau alleges Google abused its dominant market position to maintain its power. Google counters that the complaint overlooks robust competition and the benefits its ad tech provides to businesses and websites. This action mirrors a similar U.S. Department of Justice lawsuit, though Google contests those claims as well.
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In response to a Bloomberg report, Google vehemently opposes a Department of Justice proposal to force the sale of Chrome browser, arguing it would negatively impact consumers and businesses. This proposed remedy, to be presented to Judge Amit Mehta, follows his August ruling that Google holds an online search monopoly. Further, Google objects to additional proposed measures concerning its AI practices, Android OS, and data usage. The company contends these actions would undermine American technological competitiveness.
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The Department of Justice’s reported plan to force Google to sell off Chrome is a move that raises many questions. The sustainability of an independent Chrome browser is a serious concern. Existing independent browsers like Mozilla Firefox heavily rely on revenue sharing agreements with Google, illustrating the challenges of competing without the backing of a tech giant. A standalone Chrome would likely need to become even more advertiser-friendly or accept continued financial support from larger companies, potentially negating any improvements to the current market dynamics. The absence of details in the reports regarding consumer benefits further fuels these doubts.
The timing of the DOJ’s action is also questionable.… Continue reading
John Q. Hosedrinker 
Matt Underwood