A lawyer says Fox’s million-dollar donation to Melania Trump’s initiative should raise serious red flags. The legal group wants an investigation into whether Fox’s contribution influenced the DOJ’s approval of a major acquisition.
Lawyers question the timing of the Fox-Roku acquisition approval
The American Economic Liberties Project has called for a congressional investigation into the DOJ’s clearance of Fox Corporation’s $22 billion acquisition of Roku. The nonprofit legal advocacy group raised concerns after Fox donated $1 million to First Lady Melania Trump’s “Fostering the Future” initiative while the DOJ reviewed the merger. The deal closed on Friday without a complaint or consent decree filed in court.
“It should set off every alarm bell that the Fox Corporation is giving any money to the First Lady’s foster care initiative during the Justice Department’s review of its Roku deal,” said Lee Hepner, senior legal counsel at the group.
The DOJ had opened an investigation into the deal’s potential impact on competition in TV and streaming markets. It ultimately closed its review with a press statement outlining voluntary commitments from Fox. The American Economic Liberties Project noted that several commitments expire in three years and that the DOJ statement lacked a judicial enforcement mechanism.
Hepner argued the approval fits a broader trend of corporate influence. “This is part of a documented pattern, where big media corporations curry favor with the administration, via donations and promises of favorable coverage, and then deals get done,” he said.
The acquisition gives Fox control of Roku’s connected-TV platform and advertising business. According to the American Economic Liberties Project, the combined company controls roughly one in seven U.S. TV advertising dollars and gains access to Roku’s extensive viewer data.
Senator Elizabeth Warren and Rep. Becca Balint had previously objected to the deal before its approval. In July, they led lawmakers in urging the DOJ to scrutinize the merger and ensure its review was free from political interference. An October report released by Warren, with Balint and other lawmakers, separately criticized the administration’s antitrust enforcement approach and raised concerns about alleged influence peddling. A group of state attorneys general had also reportedly examined the merger. Those states retain the authority to challenge the deal even after its closing.
Hepner urged incoming lawmakers to prioritize oversight of large mergers. “The next Congress has a responsibility to take these sorts of transactions seriously and root out the blatant corruption that has allowed America to turn into an oligarchy, where power keeps getting consolidated at a remarkable rate,” he said.
