Newsmax Inc. announced Wednesday that its subsidiary, Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC in the U.S. District Court for the Southern District of Florida.
The lawsuit, spearheaded by prominent antitrust litigators at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., accuses Fox of maintaining a monopoly in the right-leaning pay television news market and systematically blocking competitors, including Newsmax. The suit seeks damages under Sections 1 and 2 of the Sherman Act, as well as the Florida Antitrust Act and Florida’s Deceptive & Unfair Trade Practices Act. Under federal law, any damages could be tripled, potentially exposing Fox to substantial financial liability.
Newsmax’s complaint alleges that Fox has leveraged its dominance to coerce distributors into restrictive agreements that exclude or marginalize rival channels. The lawsuit details a range of exclusionary tactics. These include “no-carry” provisions that tie access to Fox News with restrictions on carrying competing news networks, financial penalties that require distributors to carry low-demand Fox channels if they also carry Newsmax, and confidential drag-down clauses that penalize the promotion of Newsmax in basic packages.
In addition, Newsmax claims Fox engaged in intimidation campaigns, pressuring potential guests not to appear on the network, conducting online smear campaigns, and hiring private investigators to target Newsmax executives. According to the complaint, these actions have effectively blocked Newsmax’s expansion on major platforms such as Hulu, Sling, and Fubo.
“Fox’s behavior represents a textbook abuse of monopoly power,” said Michael J. Guzman, lead counsel for Newsmax. “Competition, not coercion, should determine what news channels Americans can watch. Fox has blocked new voices, suppressed consumer choice, and extracted excess profits.”
Internal Fox communications, cited in the lawsuit, show senior executives viewed Newsmax as a competitive threat following the 2020 election. The documents reportedly include a warning from then-host Tucker Carlson that “an alternative like Newsmax could be devastating,” statements from Fox News President Jay Wallace indicating the network was on “war footing,” and directives from Chairman Rupert Murdoch to monitor Newsmax closely. Executives allegedly tracked Newsmax’s bookings and content while strategizing to contain its growth.
The lawsuit highlights significant harm to both competition and consumers. Newsmax alleges that Fox’s exclusionary conduct has allowed the network to charge distributors nearly $2.20 per subscriber per month. Roughly double the rate for CNN and six times that of MSNBC, with the extra cost likely passed on to viewers. Millions of right-leaning audiences have been denied access to Newsmax on affordable packages, limiting choice and delaying the network’s growth, costing Newsmax hundreds of millions in lost carriage fees and advertising revenue.
Newsmax CEO Christopher Ruddy added, “This lawsuit is about restoring fairness to the market and ensuring that Americans have real choice in the news they watch. If we prevail, Fox’s damages could be tripled—a powerful message to any company that thinks it can monopolize public discourse.”
The complaint asks the court to declare Fox’s conduct unlawful under federal and state antitrust laws. Award monetary damages, enjoin Fox from continuing exclusionary contracts, and order equitable relief to restore competition in the right-leaning pay TV news market.
“American democracy depends on a vibrant and competitive media landscape,” Ruddy said. “Fox has acted as a gatekeeper, silencing emerging voices and overcharging consumers. Our lawsuit seeks not only justice for Newsmax, but also to protect the rights of viewers who deserve choice and fair pricing.”
In a statement to Barrett Media, a Fox News spokesperson said, “Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers.”
Barrett Media produces daily content on the music, news, and sports media industries. To stay updated, sign up for our newsletters and get the latest information delivered straight to your inbox.
