Fox News sued by conservative outlet Newsmax over antitrust claims - CNBC

Fox News sued by conservative outlet Newsmax over antitrust claims - CNBC

Boca Raton, FL - Newsmax Inc. (NYSE:NMAX), a leading conservative news outlet, 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 lawsuit, 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 [1].

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 [1].

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. Among the exclusionary tactics detailed in the complaint are no-carry provisions, financial penalties, confidential drag-down provisions, and intimidation campaigns [1].

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. The lawsuit alleges that Fox's exclusionary conduct has had far-reaching consequences, including higher prices, reduced consumer choice, and delayed growth of Newsmax [1].

Newsmax is represented by Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., and Sperling Kenny Nachwalter, LLC, two of the nation's premier antitrust litigation firms. Both firms have extensive experience taking on monopolistic conduct and have successfully litigated complex cases involving dominant players in telecommunication media, pharmaceuticals, and technology [1].

"Fox's behavior represents a textbook abuse of monopoly power," said Michael J. Guzman, lead counsel for Newsmax at Kellogg Hansen. "The law is clear: competition, not coercion, should decide what news channels Americans can watch. By leveraging its must-have status, Fox has blocked new voices, suppressed consumer choice, and extracted excess profits" [1].

Newsmax CEO Christopher Ruddy stated, "This lawsuit is about restoring fairness to the market and ensuring that Americans have real choice in the news they watch. If we prevail, Fox's damages could be tripled under federal law – an outcome that would send a powerful message to any company that thinks it can monopolize public discourse" [1].

The complaint underscores that Fox's conduct harms not just Newsmax, but the competitive process itself. By keeping rivals off affordable distribution packages, Fox has denied millions of Americans the diversity of viewpoints that a healthy marketplace of ideas requires [1].

Newsmax is asking the federal court to declare Fox's conduct unlawful under federal and state antitrust laws, award monetary damages as permitted by law, enjoin Fox from continuing exclusionary contracts and monopolistic practices, and order equitable relief to restore competition in right-leaning pay TV news [1].

References:
[1] https://www.newsmax.com/newsmax-tv/newsmax-lawsuit-fox-news/2025/09/03/id/1224903/