Newsmax announces it has filed a federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC in the United States District Court for the Southern District of Florida. Newsmax is accusing FOX of “engaging in an extensive and unlawful campaign to block competition in the market for right-leaning pay television news, including Newsmax.” 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. Further, Newsmax alleges that 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.” Specifically, Newsmax alleges that “FOX conditions access to FOX News on
agreements by distributors not to carry or to restrict competing right-leaning news channels. 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. These clauses penalize distributors for placing Newsmax in basic packages by requiring simultaneous promotion of FOX less popular channels.” Also, Newsmax alleges that FOX has 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. Newsmax is asking the court to: 1) Declare FOX’s conduct unlawful under federal and state antitrust laws; 2) Award monetary damages as permitted by law; 3) Enjoin FOX from continuing exclusionary contracts and monopolistic practices; and 4) Order equitable relief to restore competition in right-leaning pay TV news.