Conservative media outlet Newsmax has filed a federal antitrust lawsuit against its larger rival, Fox News, along with Fox Corporation. The case, submitted Wednesday in U.S. District Court in South Florida, claims Fox has taken advantage of its dominance in the “right-leaning pay TV news” space to suppress competition, limit what viewers can access, and slow Newsmax’s growth. The lawsuit is seeking financial damages and a court injunction that would put a stop to the alleged anti-competitive behavior.
Key Takeaways
- Newsmax says Fox has pressured TV providers to either exclude or minimize Newsmax’s visibility on cable packages.
- The lawsuit argues that these tactics have reduced consumer choice and limited competition.
- Newsmax is seeking monetary damages, which could be tripled under federal antitrust law, and an order to end Fox’s alleged conduct.
Allegations of Coercion and Monopoly
According to the complaint, Fox News enjoys a “must-have” status among conservative viewers. That status gives the network substantial leverage during negotiations with cable and satellite providers. Newsmax alleges that Fox uses this influence to impose burdensome conditions on distributors.
One example described in the filing is that Fox may require providers to carry its lower-rated channels, like Fox Business or Fox Sports 2, in widely available packages if they want to include Fox News. This bundling practice, Newsmax argues, drives up costs for providers by tens of millions of dollars. Beyond that, the complaint also claims Fox discourages guests from appearing on rival networks and has engaged in smear campaigns targeting Newsmax executives.
An attorney representing Newsmax called Fox’s conduct a “textbook abuse of monopoly power.” The company believes these tactics have held back its expansion for nearly a decade. Without such interference, Newsmax contends it could have secured broader distribution, attracted more viewers, and become a more competitive presence in the conservative media space.
The lawsuit also cites internal Fox communications, obtained during an earlier defamation case, that reportedly show Fox executives were concerned about Newsmax gaining traction with conservative viewers following the 2020 election.
Fox News Responds
Fox News responded swiftly, dismissing the lawsuit as an excuse for what it views as Newsmax’s own shortcomings. The network said Newsmax is attempting to “sue their way out of their own competitive failures” and suggested the lawsuit is more about publicity than legal merit.
Fox has long been the top-rated cable news network in the country. According to Nielsen Media Research, it held 56 percent of the primetime cable news audience in 2024. Newsmax, meanwhile, continues to reach a much smaller viewership.
The Legal Framework
The case is built on the Sherman Act, a foundational U.S. law that prohibits monopolistic behavior and promotes open competition. While antitrust claims like this are not new, applying them to the modern media landscape could offer some interesting precedents. If the court finds in favor of Newsmax, the damages awarded could be tripled under federal statute, which might have serious financial implications for Fox.
This is not the first legal clash involving these two networks. Both were recently involved in major defamation cases related to their coverage of the 2020 U.S. presidential election. Fox News paid a $787.5 million settlement to Dominion Voting Systems. Newsmax, in a separate case, agreed to pay Dominion $67 million. Some of the same internal documents revealed during those lawsuits are now being referenced again in this new antitrust filing.
FAQs
Q. What is a federal antitrust lawsuit?
A. An antitrust lawsuit is a legal action filed against a company or companies for engaging in illegal practices that harm competition. These practices include forming monopolies, price-fixing, and other unfair business behaviors. The U.S. government and private companies can file these lawsuits.
Q. What is the Sherman Act?
A. The Sherman Act of 1890 is a federal law that aims to prevent and prosecute actions that restrain or monopolize trade. It is the foundation of U.S. antitrust law. The law’s main purpose is to ensure fair competition in the marketplace.
Q. What is a “must-have” channel?
A. A “must-have” channel is a television network with such high ratings or demand from viewers that distributors feel they must include it in their packages. This gives the channel leverage in negotiating with distributors. The complaint from Newsmax argues that Fox News has achieved this status.
