Fox responded to Newsmax's lawsuit by saying "Newsmax cannot sue their way out of their own competitive failures in the marketplace." How does this response affect how dominant companies defend against antitrust challenges?

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Fox responded to Newsmax's lawsuit by saying "Newsmax cannot sue their way out of their own competitive failures in the marketplace." How does this response affect how dominant companies defend against antitrust challenges?

Accepted Answer

Fox's response employs the classic dominant firm defense strategy: attributing market outcomes to merit rather than misconduct. By claiming Newsmax has "competitive failures" and "can't attract viewers," Fox frames its dominance as earned through superior content rather than exclusionary conduct. This deflects attention from the alleged anticompetitive tactics while portraying Newsmax as a poor performer seeking legal shortcuts to success.

Fox responded to Newsmax's lawsuit by saying "Newsmax cannot sue their way out of their own competitive failures in the marketplace." How does this response affect how dominant companies defend against antitrust challenges?

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