Fox Sues Turner, Alleging Unfair Competition

Fox sued Turner Broadcasting System and its parent company, Time Warner, on Tuesday, claiming Turner’s new regional entertainment network directly violates the non-compete agreement of a $65-million deal struck between the two media companies three years ago.

Fox Sports Net South on Tuesday asked a Superior Court judge to restrain Turner from offering its new network, known as Turner South.

Fox said the Turner network will directly compete with Net South, causing Turner to break its 12-year non-compete clause with Fox and thus breach a 1996 contract between the two companies in which Fox acquired SportSouth from Turner.

Fox alleges that after receiving the payment for SportSouth, Turner “secretly began to make plans to form its own regional cable television sports network to broadcast Atlanta Braves, Atlanta Hawks and Atlanta Thrashers games in direct competition with SportSouth.”

Turner and Time Warner announced Turner South Feb. 24, saying the new network would offer movies, sitcoms, sports and original programs designed for the tastes of viewers in six southeastern U.S. states.