Fox News Faces Legal Challenge From Newsmax Over Alleged Anticompetitive Tactics

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Fox News Faces Legal Challenge From Newsmax Over Alleged Anticompetitive
A Fox News logo is pictured ahead of the first Republican Presidential primary debate at the Fiserv Forum in Milwaukee, Wisconsin, on August 23, 2023. KAMIL KRZACZYNSKI/AFP via Getty Images/Getty Images

Newsmax has filed a major lawsuit against Fox News, claiming the network used unfair business practices to stop competition in conservative TV news.

The lawsuit, filed Wednesday in federal court in Florida, says Fox News and its parent company, Fox Corp., created a system that blocks other right-leaning news channels from growing.

Newsmax claims this has hurt its ability to compete fairly and reach more viewers.

"Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over," said Newsmax CEO Christopher Ruddy. "We felt we had to bring the suit... We think we have an extremely strong case."

According to the lawsuit, Fox allegedly pressured TV providers not to carry channels like Newsmax.

The complaint says Fox gave access to its popular content only if providers agreed not to carry other conservative networks or placed limits on them.

Newsmax also says Fox imposed extra fees on providers who carried rival channels and built barriers into contracts that hurt competitors.

According to BBC, Fox News quickly responded, saying, "Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can't attract viewers."

Newsmax Sues Fox to Restore Fairness in Conservative Media

Newsmax is asking the court to block these alleged practices and to award financial damages. Ruddy said the lawsuit aims to give Americans more choices.

"This lawsuit is about restoring fairness to the market and ensuring that Americans have real choice in the news they watch," he said.

This legal fight also highlights growing tension in conservative media. Both Newsmax and Fox News appeal to pro-Trump viewers.

While Fox remains the top-rated cable news network, Newsmax has gained ground, with its audience growing sharply in recent years.

Newsmax claims over 26 million quarterly viewers and says that 8 million cable viewers watched Newsmax but not Fox News earlier this year, CNN reported. Still, Fox News holds the larger audience and more power in the TV market.

Ruddy, a longtime Trump ally, recently partnered with Trump's media company in launching Truth+, a move that signaled closer ties between Newsmax and the former president.

The case also follows past legal troubles for both networks. Newsmax and Fox have each settled lawsuits with Dominion Voting Systems over false claims about the 2020 election.

Newsmax paid $67 million, while Fox agreed to pay $787.5 million.

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