The Wall Street Journal reports that News Corp is facing monopoly allegations. The company’s competitor, Insignia Systems Inc. claims that the company and its two subsidiaries are violating a federal antitrust law by monopolizing the industry.
Insignia Systems Inc. filed a lawsuit claiming that News Corp and its subsidiaries are using “exclusionary contracts” to the detriment of competitors. News Corp and subsidiary News America Marketing have allegedly used contracts to keep Insignia from making deals with retailers.
Insignia says that News America Marketing used a right-of-refusal provision with a retailer that Insignia was negotiating with. This provision allowed News America Marketing to urge the retailer to walk away from the deal.
Other contract provisions that News America used limited the type and introduction of products that providers can showcase in stores, according to Insignia.
In 2016, multiple consumer brands similarly accused News America Marketing of monopolistic practices in a lawsuit. News Corp settled the lawsuit for $250 million, but denied that they did anything wrong.
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