Newsmax has filed an antitrust lawsuit against Fox News and its parent company Fox Corporation, alleging that the network has used anti-competitive practices to maintain its dominance in the right-leaning pay-TV news market. The suit, lodged in federal court in Florida, claims Fox engaged in an 'exclusionary scheme' to suppress competition.
According to the legal filing, Fox imposed 'no carry' provisions on distributors, restricting them from carrying other right-leaning channels such as Newsmax. It also allegedly forced distributors to pay high fees for lesser-watched channels like Fox Business and Fox Sports 2 if they wanted to offer Newsmax on basic tiers.
Newsmax argued that the relevant market is for right-leaning pay-TV news channels, distinct from general news, as viewers are unlikely to switch to outlets like CNN or MSNBC. The lawsuit described Fox's tactics as 'unlawful monopolisation' and claimed they caused significant financial harm to Newsmax, including lost business and revenue.
A Fox News spokesperson dismissed the lawsuit, saying, 'Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers.' Newsmax countered that if it were a ratings failure, Fox would not have spent resources on suppressing it.
The lawsuit also accused Fox of hiring private detectives to investigate Newsmax executives and using a social media firm to spread negative messages about CEO Chris Ruddy. Newsmax is seeking triple damages, an injunction, and other relief, though the specific amount of damages was not disclosed.
