MySpace co-founder Brad Greenspan is making a fuss once again by filing a lawsuit Thursday against MySpace parent News Corp. that alleges the social network violated antitrust laws by blocking links to his new website.
The lawsuit filed in Los Angeles Federal District Court claims that News Corp. prevents MySpace users from mentioning or using competitive products or websites, including video, photo, and social networking products. Mr. Greenspan was the largest shareholder in MySpace parent Intermix when it was sold to News Corp. for $580 million last year.
Mr. Greenspan claims that MySpace’s censorship tactics has caused traffic to plummet at his new video-hosting startup Vidilife.com, which he launched over a year ago. Mr. Greenspan argues that MySpace prevents members from using or talking about those sites.
“News Corp…has harmed at least 800,000 MySpace users by cutting off and blocking their use of vidiLife as a video hosting service provider,” Mr. Greenspan said in a statement. “vidiLife and the MySpace users that use the vidiLife service are just the first wave of casualties in a larger censorship campaign that News Corp. intends to increase if they are not stopped.”
The lawsuit seeks unspecified damages and asks the court to order MySpace to restore all links to vidiLife.com.
In a statement issued Thursday, a spokesman for Fox Interactive Media said, "MySpace generally blocks links to websites for three reasons: adult content, copyright infringement, and security risks. Universal Music Group identified vidiLife.com as a website that is a primary source of infringing UMG content. We continue to look into the matter."
Mr. Greenspan has been a vocal critic of the Intermix sale and demanded a federal investigation into the sale of MySpace to News Corp., alleging the deal defrauded shareholders out of tens of billions of dollars (See MySpace Backer Seeks Probe). A Los Angeles Superior Court judge dismissed a lawsuit challenging the acquisition on October 9 (see MySpace Sale Challenge Dismissed).Contact the writer: AWeinstein@redherring.com