Newsmax announced Wednesday that its subsidiary, Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC (collectively, "Fox") in the U.S. District Court for the Southern District of Florida.

Newsmax stated that the lawsuit is being led by prominent antitrust litigators from Kellogg, Hansen, Todd, Figel & Frederick, PLLC.

The lawsuit alleges that Fox engaged in a widespread and unlawful campaign to block competition in the right-leaning pay TV news market, including from Newsmax.

Newsmax's lawsuit seeks damages under Sections 1 and 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive and Unfair Trade Practices Act, the company said.

The complaint claims that Fox has for years abused its dominant position in the right-leaning pay TV news market by forcing distributors into unfair distribution agreements designed to exclude or marginalize competitors like Newsmax.

The exclusionary tactics outlined in the complaint include:

Exclusionary clauses: Fox grants distributors access to Fox News on the condition that they will not carry or will restrict competing right-leaning news channels.

Financial penalties: If a distributor carries Newsmax, Fox imposes substantial financial penalties, requiring the distributor to carry low-demand channels like Fox Business or Fox Sports 2 in the same high-viewership tiers, resulting in tens of millions of dollars in additional costs.

Non-public "drag-along" clauses: These clauses disadvantage distributors by requiring them to concurrently promote Fox's less popular channels if they include Newsmax in their basic packages.

Intimidation campaign: Fox has reportedly pressured guests to refuse appearances on Newsmax, operated an online smear campaign, and hired private investigators to target Newsmax executives to undermine the company's credibility.

The complaint alleges that Fox has intentionally blocked Newsmax’s growth on major platforms including Hulu, Sling, and Fubo as a result.

According to internal Fox communications referenced in the complaint, senior executives and talent viewed Newsmax as a competitive threat following the 2020 election.

Newsmax noted that millions of right-leaning viewers seeking alternatives were unable to access Newsmax through their low-cost basic packages, leaving Fox as their only viable option.

"As a result of Fox's practices, Newsmax has been unable to gain significant traction with distributors, advertisers and viewers, causing the company to lose hundreds of millions of dollars in distribution fees and advertising revenue," Newsmax claimed.

Newsmax is asking the federal court to declare Fox's actions unlawful under antitrust laws, award monetary damages as permitted by law, enjoin Fox from continuing to engage in exclusive contracts and monopolistic practices, and grant equitable relief to restore competition in the right-leaning pay TV news market.

By Kim Sung-gu, Editor-in-Chief, USA NNP = Special Correspondent info@newsandpost.com