Conservative media outlet Newsmax has filed a major lawsuit against Fox News, accusing the cable news giant of abusing its power to act like a monopoly. The suit was filed in federal court in southern Florida on Wednesday and quickly caught national attention.
Newsmax Takes Fox News to Court
In the filing, Newsmax lawyers claim that Fox News has long tried to suppress competition from other right-leaning networks. They argue that Fox is not just competing in the marketplace but has been actively blocking competitors from growing.
The lawsuit states that Fox uses unfair tactics to control the “Right-leaning Pay TV News Market.” According to Newsmax, Fox has pressured distributors—companies that carry TV channels—to sign restrictive contracts. These contracts allegedly prevent distributors from carrying or promoting rival channels like Newsmax.
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Lawyers for Newsmax also claim that Fox went even further by using intimidation tactics, including allegedly hiring private detective firms to investigate Newsmax executives. Newsmax insists that such behavior has harmed its growth, reduced its audience reach, and hurt its chances with advertisers.
Claims of Exclusion and Suppression
The complaint alleges that Fox makes access to its main channels, such as Fox News, conditional on distributors not giving room to competitors. If a distributor decides to carry Newsmax or other similar channels, Fox allegedly responds with penalties.
One of the examples cited in the lawsuit is that distributors are forced to carry Fox’s less popular channels, like Fox Business, and pay high fees for them. This move, according to Newsmax, keeps distributors tied to Fox while making it harder for smaller networks to compete.
Newsmax claims that if Fox had not engaged in such practices, it would have gained broader distribution much sooner. It believes its ratings, audience size, and advertiser base would have grown faster. This, the lawsuit argues, would have made Newsmax a stronger player in the media industry.
Christopher Ruddy, the CEO of Newsmax, voiced his frustration in an interview with CNBC. He asked, if Fox believes Newsmax is weak and unable to compete, “then why did they spend so much time throughout the years blocking and suppressing us?”
Ruddy also released a statement saying, “Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over.”
Fox News Responds as Legal Battles Grow
Fox News responded sharply to the lawsuit, dismissing it as an excuse for Newsmax’s struggles. A Fox spokesperson stated, “Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers.”
But Newsmax is not only seeking public attention. In court, it is asking for a permanent injunction to stop Fox from continuing with such agreements. It is also demanding financial damages. Specifically, Newsmax wants a judgment worth three times the damages it believes it has suffered, along with interest at the highest legal rate.
Although Newsmax has not given an exact number, Ruddy has said the damages will be “significant and serious.”
This antitrust lawsuit adds to the long list of legal troubles Fox News has faced in recent years. In 2023, Fox paid more than $787 million to settle a defamation case with Dominion Voting Systems over false claims aired about the 2020 presidential election. In a related case, Newsmax also had to pay $67 million to settle defamation claims.
Fox News is also still facing another major lawsuit from Smartmatic, a voting machine company, which is seeking $2.7 billion in damages. That case is expected to go to trial.
The new lawsuit from Newsmax shines a light on the competitive battles inside the world of cable news. For years, Fox has been the most-watched cable news network in the United States, holding a dominant position. Newsmax now argues that Fox has maintained that dominance not only through popularity but also through unfair business practices that restrict competition.