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Third Party Regulation (Dominion vs Fox News)


The 2020 US election creates a hotbed for several noteworthy controversy in the realm of media. A prime example of this phenomenon is the proliferation of misinformation and its major consequences, which could potentially be overseen by third-party company rather than relying on governmental regulator or corporations to regulate it. The highlight of the case on Dominion Voting Systems V. Fox lawsuit, where Dominion took legal action against Fox News, alleging defamation. Dominion asserted that Fox intentionally disseminated misleading narratives suggesting corruption and flawed voting systems, despite being aware of their inaccuracy. This misleading information was propagated through statements made by legal representatives of Donald Trump, notably Sidney Powell, who claimed on air that Dominion's voting machines played a role in election manipulation. Dominion sought recovery for the reputation damage caused by the erosion of trust in their systems, leading several states to discontinue their utilization on Dominion's voting machine. The lawsuit sought a staggering $1.6 billion in damages from Fox News.

During the legal proceedings, evidences are revealed during the discovery phase indicating that both Fox Executives and news anchors privately recognized the artificial nature of the narratives disseminated by Sidney Powell and Rudy Giuliani. However, once they publicly confirmed that the election had indeed been tampered with, this contradicted their beliefs and internal evidence. By May 2023, Fox and Dominion arrived at an out-of-court settlement amounting to $786 million. Fox chose this resolution to avoid potential adverse publicity from the trial, which could further damage their reputation and result in additional financial loss.

In comparison to  platforms like social media, Fox News bears legal accountability for the content presented by their news anchor on its platform, as it does not benefit from the safeguards provided by Section 230 of US Law, a provision exclusively applicable to internet companies. Given the considerations surrounding freedom of speech, defamation, and the deliberate propagation of false information, it is crucial for individuals to be held answerable for their actions. This accountability is particularly pivotal when media organizations enable the dissemination of misinformation that contradicts their own beliefs, as was evident in the case of Fox News.

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