Newsmax sues Fox News, alleging anti-competitive tactics to suppress rivals

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Underdog conservative channel Newsmax is challenging Rupert Murdoch’s dominant Fox News in court.

On Wednesday, Newsmax filed a lawsuit against Fox Corporation (Fox News’ parent firm), alleging that their actions amounted to anticompetitive behavior with the intention of unfairly restricting competitors in order to preserve their “illegal monopoly over the Right-leaning Cable News Market.

In simpler terms, the company from Boca Raton, Florida, asserted in a federal lawsuit filed in Miami that Fox has been employing a strategy to strengthen and preserve its market dominance. This tactic has allegedly led to a reduction in competition within the market, which in turn adversely affects consumers, other competitors, and Newsmax Broadcasting.

In simpler terms, Fox News, which caters to politically conservative audiences, has been a profitable venture since its launch in 1996 by Rupert Murdoch along with network architect Roger Ailes. Nearly two decades later, in 2014, Newsmax emerged as an alternative. By then, Fox News was already firmly established as the preferred news source for Republicans and other conservative politicians.

In a 31-page lawsuit, Newsmax claimed that Fox utilized its strong position in the market to dissuade pay-TV providers from featuring or promoting Newsmax and other competitive conservative news networks. According to the lawsuit, Fox reportedly imposed financial penalties on distributors who included Newsmax in basic cable packages, and also created additional hurdles such as increased fees or insisting on carrying lesser-watched channels like Fox Business.

In my perspective as a follower, the statement can be rephrased as: “Had Fox not engaged in anticompetitive practices, Newsmax believes it could have secured broader pay TV distribution, experienced audience and rating growth sooner, achieved ‘critical mass’ with major advertisers earlier, and ultimately, become a more valuable media property overall.

This year, Newsmax transitioned into a publicly held corporation. In its initial public sale, it garnered $75 million; however, the stocks that initially sold for approximately $83 per share are currently being traded near $14 in the market.

Hollywood Inc.

The Boca Raton, Florida-based news organization, known as a haven for political conservatives, experiences a significant boost following its initial public offering (IPO).

Fox News scoffed at the lawsuit.

Newsmax cannot escape the consequences of their poor performance in the market by suing instead of focusing on improving viewership, according to their official statement.

As a passionate film enthusiast, I’d put it this way: In a recent lawsuit, I’ve noticed that Fox is accused of using its dominance when negotiating deals with streaming platforms like Hulu + Live TV, DirecTV+, and YouTube TV. These platforms, collectively accounting for approximately 30% of the pay-TV market, are allegedly being influenced by Fox in such a way that smaller channels like Newsmax might not be carried or highlighted by some pay-TV providers, according to the complaint.

As a film enthusiast, I can’t help but notice the stronghold Fox has over the broadcasting world. It seems they are skillfully negotiating “superior subscription fees,” as reported by Newsmax. Fox demands approximately $2.20 from pay-TV distributors for each subscriber, every month, to include Fox News in their lineup. This figure is nearly twice what CNN asks and roughly six times the amount MSNBC gets, according to Newsmax’s findings.

Fox News regularly outperforms CNN and MSNBC in Nielsen ratings, even taking the top spot among conventional television networks in July, surpassing ABC, NBC, and CBS as per Nielsen’s data.

Newsmax stated that these increased expenses might get transferred to the customers, either they have already done so or could potentially do so.

Hollywood Inc.

As a cinephile and keen observer of current events, I find myself compelled to address an intriguing turn in the unfolding drama between Newsmax, a popular media outlet, and Dominion Voting Systems. In this latest chapter, a Delaware judge has taken issue with Newsmax’s broadcast of allegedly misleading statements concerning Trump’s disputed election fraud accusations against Dominion Voting Systems. Essentially, the judge deems their reporting to be riddled with unfounded claims, a finding that raises significant questions about journalistic integrity and responsible reporting in today’s media landscape.

Newsmax claims that Fox News sometimes employs aggressive tactics such as putting pressure on potential guests to avoid appearing on Newsmax, and even hires private detectives to discredit Newsmax’s executives and its overall reputation. This is what Newsmax reported in their official statement.

In its legal argument, Newsmax asserts that the broader cable news market, which includes CNN and MSNBC, is not the only relevant market to consider. Rather, they argue that there exists a distinct niche market catering specifically to politically conservative news, with Fox being the dominant player in this particular sphere.

According to the Newsmax lawsuit, traditional TV news channels with conservative viewpoints have played a significant role in American television, consistently attracting a large audience of over tens of millions who resonate with or prefer conservative political opinions, as well as their take on current issues and cultural discussions.

Many consumers of political news prefer content that reflects their political beliefs. If their preferred right-wing news sources are unavailable, they tend to switch to other similar channels rather than turning to left-wing news outlets.

Newsmax is pursuing a court trial, seeking both monetary compensation yet undetermined, and an order from the judge declaring Fox’s actions as illegal under the Sherman Act and Florida’s competition laws. Additionally, Newsmax wants the judge to prevent Fox from entering into exclusive contracts that may restrict competition.

According to Newsmax CEO, Christopher Ruddy, this legal action aims to reestablish balance in the market and provide genuine options for American viewers when it comes to their news selection.

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2025-09-03 23:01