Newsmax is taking Fox News to court, accusing the cable giant of using monopoly power and intimidation to block out right-leaning competitors. The lawsuit claims Fox's tactics have stifled competition and hurt Newsmax's growth in the conservative media landscape, CNBC reports. The antitrust lawsuit, filed in federal court in southern Florida, alleges that Fox News uses restrictive agreements and intimidation tactics—including hiring private investigators to scrutinize Newsmax executives—to limit rivals' access to distributors. According to the suit, Fox pressures cable providers into agreements that either exclude channels like Newsmax or relegate them to less favorable positions.
Distributors who resist reportedly face financial penalties, such as being required to carry less-watched Fox channels at higher rates. Newsmax claims these strategies have prevented it from gaining wider distribution, growing its audience, and attracting major advertisers at a crucial stage. "Fox's behavior represents a textbook abuse of monopoly power," said Newsmax lawyer Michael J. Guzman, per the AP. "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."
Newsmax CEO Christopher Ruddy contends that Fox's conduct has artificially limited competition, stating, "Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over." The lawsuit seeks a court order to block Fox's current practices and asks for damages amounting to three times the losses Newsmax says it incurred, plus interest.
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Fox News brushed off the allegations, with a spokesperson saying that Newsmax is simply seeking headlines because it "can't attract viewers." Ruddy countered by questioning why, if Fox is so confident, it expended "so much time throughout the years blocking and suppressing us." According to the lawsuit, when Newsmax confronted Fox News over its behavior, Fox replied, "Welcome to the big leagues."