Newsmax is suing Fox Corporation and Fox News for serious antitrust violations that they say stifle right-leaning channels like Newsmax.
They claim that Fox used their market powers to bully distributors into not carrying or restricting Newsmax and other competing right-leaning news channels.
Here’s more via Newsmax:
Newsmax Inc. announced today that the Company’s subsidiary, Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC (collectively, “Fox”) in the United States District Court for the Southern District of Florida.
The suit, led by prominent antitrust litigators at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., accuses Fox of engaging in an extensive and unlawful campaign to block competition in the market for right-leaning pay television news, including Newsmax.
Newsmax’s action seeks damages under Sections 1 and 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive & Unfair Trade Practices Act.
Under federal law, any damages awarded in this case will be trebled – meaning Fox faces significant financial liability if Newsmax prevails.
The complaint alleges that Fox has abused its dominance in the right-leaning pay TV news market for years by coercing distributors into unfair carriage agreements designed to exclude or marginalize competitors like Newsmax.
Fox News, described in the complaint as a “must-have” channel for distributors, leverages its market power to impose restrictions that harm consumers, stifle competition, and drive up costs across the pay TV ecosystem.
Among the exclusionary tactics detailed in the complaint:
- No-Carry Provisions: Fox conditions access to Fox News on agreements by distributors not to carry or to restrict competing right-leaning news channels.
- Financial Penalties: If distributors carry Newsmax, Fox forces them to also carry low-demand channels like Fox Business or Fox Sports 2 in their most widely viewed tiers – triggering potentially tens of millions in extra fees.
- Confidential Drag-Down Provisions: These clauses penalize distributors for placing Newsmax in basic packages by requiring simultaneous promotion of Fox less popular channels.
- Intimidation Campaigns: Fox has allegedly pressured its guests to not appear on Newsmax, as well as has run online smear campaigns and hired private investigators targeting Newsmax executives to damage the Company’s credibility.
Well this would be interesting, to say the least, if this all turns out to be provably true and Newsmax wins a big settlement. It would most certainly cast them into a very negative light among viewers, of which they have many.