Newsmax Files Antitrust Lawsuit Against Fox News
Newsmax has launched a federal antitrust lawsuit against Fox News, alleging that the conservative news network has monopolized the market and misused its power.
The lawsuit was filed in the U.S. District Court for the Southern District of Florida. Newsmax’s attorneys contend that Fox News is engaging in an extensive and illegal campaign to eliminate competition in the conservative television market.
In its complaint, Newsmax cites violations of several laws, including Sections 1 and 2 of the Sherman Act, and claims that Fox News has abused its dominance in the conservative news segment.
The lawsuit points out that over the years, Fox has allegedly used its control in the right-leaning pay TV news market to impose unfair contracts on distributors, aimed at marginalizing competitors like Newsmax. The complaint describes Fox News as an “essential” channel for distributors, claiming it has leveraged its market power to harm consumers, limit competition, and enforce constraints that negatively impact costs across the pay television landscape.
According to Newsmax, Fox News has utilized at least three anti-competitive tactics to eliminate rival providers of conservative video content from the market. The first tactic involves imposing non-carriage provisions on distributors, essentially requiring them to choose between carrying Fox’s content or that of other right-leaning news outlets, including Newsmax. The second involves financial penalties for those who choose to carry Newsmax, pushing distributors to prioritize Fox’s less popular channels like Fox Business.
Despite these hurdles, Newsmax claims it has actually gained significant traction in the distribution of its programming, outperforming in viewership and ratings, ultimately securing a critical mass of advertisers and becoming a more valuable media entity.
Newsmax suggests that under federal law, any damages arising from this case could be tripled, which could lead to significant liabilities for Fox News if Newsmax’s popularity continues to rise.
In response to the lawsuit, Fox News asserted that Newsmax’s inability to attract an audience is merely a result of its own competitive failures in the market, according to reports from the Washington Post.
