Newsmax files lawsuit against Fox News to challenge tactics aimed at preserving right-wing media influence.
In a significant legal move, Newsmax, a conservative media outlet, has initiated an antitrust lawsuit against Fox News, challenging the dominance of the larger network in the right-wing cable news market. The suit, filed in the Southern District Court of Florida, alleges that Fox Corporation has engaged in an exclusionary scheme designed to maintain its market supremacy for U.S. right-leaning pay TV news, thereby stifling competition that adversely affects consumers and Newsmax Broadcasting, LLC.
The legal complaint asserts that Fox News has implemented restrictive “no carry” provisions with various cable providers, effectively limiting access to conservative viewpoints for viewers. Newsmax alleges that Fox uses its significant market influence to penalize distributors offering a more equitable selection of news channels, thereby thwarting competition.
Newsmax CEO Christopher Ruddy remarked that Fox’s practices have been obscured by confidentiality agreements, leading to the obstruction of independent news outlets, including Newsmax, from gaining carriage on cable platforms. He suggested that these actions undermine the foundational principles of competition and consumer choice in the media marketplace.
In response, Fox News has firmly rejected Newsmax’s allegations, attributing the latter’s struggles to its inability to compete effectively within the marketplace. A spokesperson for Fox asserted that Newsmax cannot remedy its competitive shortcomings through litigation, emphasizing that the network’s failure to attract significant viewership is the root of its challenges.
Launched in 2014, Newsmax found itself directly competing with Fox News following the 2020 presidential election. The outlet gained traction among supporters of then-President Donald Trump, particularly those who were dissatisfied with Fox’s coverage of the election results, which culminated in Biden’s victory over Trump. This shift occurred against a backdrop of various unsubstantiated claims of voter fraud leveled by Trump and his supporters.
Former Fox News host Tucker Carlson has alluded to the potential threats posed by alternative news outlets like Newsmax, suggesting that their rise could significantly impact Fox’s viewership if the network did not align with its audience’s expectations. In recent years, Trump’s relationship with Fox has seen fluctuations, particularly after the election, although it appears that a reconciliation of sorts has been achieved, with several former Fox personalities taking on roles in his administration.
A recent ratings report from Fox News highlighted its status as the highest-rated network in all of television since June 2020, further complicating the competitive landscape in conservative media. The outcome of the ongoing lawsuit may shape the future dynamics within the right-wing news sector, as both Newsmax and Fox continue to vie for influence and audience share amidst evolving market conditions.
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