In a dramatic escalation of the US cable news wars, the conservative network Newsmax has filed a blockbuster antitrust lawsuit against its far larger rival, Fox News. The legal action, filed in a New York federal court, alleges a coordinated and coercive scheme designed to cripple Newsmax's operations and eliminate it as a competitor.
The suit names not only Fox News but also two of America's cable titans: Comcast and Charter Communications. Newsmax contends that these companies conspired to drastically slash the fees paid to carry its channel, effectively forcing it off their platforms and strangling its revenue stream.
The Core of the Allegations
According to the lawsuit, the conspiracy was set in motion after the 2020 presidential election. Newsmax's viewership surged as it amplified former President Donald Trump's baseless claims of voter fraud, a strategy Fox News initially hesitated to embrace fully.
Newsmax alleges that Fox, feeling the competitive threat, leveraged its immense market power to strong-arm cable providers. The suit claims Fox offered Comcast and Charter lucrative financial incentives and favourable carriage terms on one condition: they had to demote or drop Newsmax entirely.
The result was catastrophic for Newsmax. The company states its carriage fees from Comcast plummeted from over $13 million a year to a mere $500,000. This financial blow led to significant layoffs and a severe reduction in its broadcasting capabilities.
A Chilling Message to Competitors
"This is a classic antitrust case," the lawsuit declares, framing the actions of Fox and the cable operators as a blatant attempt to crush a nascent rival. Newsmax argues this move sends a chilling message to any other potential competitor considering challenging Fox News's dominance in the conservative media landscape.
The legal filing paints a picture of a market where a dominant player can use its power to not just compete, but to suppress competition outright by controlling the essential distribution channels—the cable platforms themselves.
What Newsmax Wants
Newsmax is seeking a jury trial and is asking the court for:
- Triple damages for the immense financial harm it has suffered.
- A court order to prevent Fox from continuing these alleged anti-competitive practices.
- Restoration of its previous carriage agreements and fees on the cable platforms.
This lawsuit promises to tear back the curtain on the brutal, behind-the-scenes business battles that define the American media industry, setting the stage for one of the most significant legal fights in cable news history.
