Newsmax Files Massive Lawsuit Against Fox News, Alleges Antitrust Violations

Newsmax announced Wednesday that the company’s subsidiary ,Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC over alleged antitrust violations.

The suit, led by high-profile antitrust attorneys at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., accuses the conservative media giant of engaging in an “extensive and unlawful” campaign to block competition in the market for conservative-leaning television news, including Newsmax.

Newsmax’s legal action seeks damages under Sections 1 and 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive & Unfair Trade Practices Act. The case has been filed in the United States District Court for the Southern District of Florida.

The complaint accuses Fox News of “abusing” its dominance in the right-leaning pay TV news market by “coercing” distributors into unfair carriage agreements designed to exclude or marginalize competitors, including Newsmax.

Fox News is described in the complaint as a “must have” channel for distributors, which allegedly “leverages its market power to impose restrictions that harm consumers, stifle competition, and drive up costs across the pay TV ecosystem.”

Newsmax is also accusing Fox of engaging in “intimidation campaigns” by allegedly pressuring guests not to appear on Newsmax, in addition to running what the complaint describers as “online smear campaign” and hiring private investigators to damage the company’s credibility.

As a result of the conduct listed in the complaint, Newsmax’s legal team is accusing Fox of “deliberately” blocking its growth in critical distribution platforms such as Hulu, Sling, Fubo, and other major platforms.

It further cites internal Fox communications pertaining to Newsmax’s growth and strength as a competitor.  In one example, the company cited an email from then-Fox News host Tucker Carlson that warned how “an alternative like Newsmax could be devastating to us.”

It also cites communications from Fox Chairman Rupert Murdoch, who instructed Fox News CEO Suzanne Scott that Newsmax “should be watched” as a result of press stories about the network.

“Fox has sought to protect and expand its monopoly power in the right-leaning pay TV news market by engaging in a suite of anticompetitive behaviors,” the complaint states, adding Fox’s unlawful and exclusionary conduct “has harmed not just Newsmax and other competitors,” but also “consumers and competition itself.”

“Fox’s behavior represents a textbook abuse of monopoly power,” said Michael J. Guzman, lead counsel for Newsmax at Kellogg Hansen. “The law is clear: competition, not coercion, should decide what news channels Americans can watch. By leveraging its must-have status, Fox has blocked new voices, suppressed consumer choice, and extracted excess profits.”

In a statement to Variety magazine, Fox News dismissed their competitor’s suit as a frivolous complaint that should be thrown out. “Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers,” a Fox News spokesperson told the outlet.