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Newsmax Files Lawsuit Against Fox News

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Newsmax (NYSE:NMAX) has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network in the U.S. District Court for the Southern District of Florida. The lawsuit alleges Fox abused its market dominance in right-leaning pay TV news through anticompetitive practices.

The complaint details several exclusionary tactics by Fox, including no-carry provisions, financial penalties for distributors carrying Newsmax, and confidential drag-down clauses. Fox allegedly charges distributors nearly $2.20 per subscriber monthly, double CNN's fees and six times MSNBC's.

Internal communications cited in the complaint show Fox executives viewed Newsmax as a competitive threat post-2020 election. The lawsuit seeks triple damages under federal law and aims to restore competition in the right-leaning pay TV news market.

Newsmax (NYSE:NMAX) ha presentato una importante causa antitrust federale contro Fox Corporation e Fox News Network presso il Tribunale Distrettuale degli Stati Uniti per il Distretto Meridionale della Florida. L'azione sostiene che Fox abbia abusato della sua posizione dominante nel mercato delle notizie pay TV di orientamento conservatore con pratiche anticoncorrenziali.

Il ricorso descrive diverse tattiche di esclusione adottate da Fox, tra cui clausole di no-carry, sanzioni finanziarie per i distributori che trasmettono Newsmax e clausole riservate che ne deprimono la visibilità. Si contesta inoltre che Fox addebiti ai distributori quasi $2,20 per abbonato al mese, il doppio rispetto a CNN e sei volte quello di MSNBC.

Comunicazioni interne riportate nella denuncia indicano che dirigenti di Fox consideravano Newsmax una minaccia competitiva dopo le elezioni del 2020. La causa chiede il risarcimento triplo previsto dalla legge federale e mira a ripristinare la concorrenza nel mercato delle notizie pay TV di orientamento conservatore.

Newsmax (NYSE:NMAX) presentó una importante demanda antimonopolio federal contra Fox Corporation y Fox News Network en el Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Florida. La demanda alega que Fox abusó de su dominio en el mercado de noticias de pago de tendencia conservadora mediante prácticas anticonpetitivas.

La denuncia detalla varias tácticas de exclusión de Fox, incluidas cláusulas de no-carry, sanciones económicas para distribuidores que incluyeran a Newsmax y cláusulas confidenciales que lo relegaban. Se afirma además que Fox cobra a los distribuidores casi $2,20 por suscriptor al mes, el doble que CNN y seis veces más que MSNBC.

Comunicaciones internas citadas en la demanda muestran que ejecutivos de Fox vieron a Newsmax como una amenaza competitiva tras las elecciones de 2020. La demanda busca daños triples conforme a la ley federal y pretende restaurar la competencia en el mercado de noticias de pago con sesgo conservador.

Newsmax (NYSE:NMAX)는 플로리다 남부 연방지방법원에 포크스 코퍼레이션(Fox Corporation)과 폭스 뉴스 네트워크(Fox News Network)를 상대로 중대한 연방법 반독점 소송을 제기했습니다. 소송은 폭스가 우익 성향의 유료 TV 뉴스 시장에서 지배적 지위를 남용해 반경쟁적 행위를 했다고 주장합니다.

소장에는 폭스가 사용한 여러 배제적 전술이 적시되어 있는데, 송출 금지 조항(no-carry provisions), Newsmax를 송출하는 유통사에 대한 재정적 제재, 비밀스러운 끌어내리기 조항 등이 포함됩니다. 폭스는 유통사에 대해 가입자당 월간 거의 $2.20를 청구하는데, 이는 CNN의 두 배, MSNBC의 여섯 배에 해당한다고 주장합니다.

소장에 인용된 내부 통신은 2020년 대선 이후 폭스 경영진이 Newsmax를 경쟁 위협으로 인식했음을 보여줍니다. 이 소송은 연방법에 따라 손해배상 3배를 청구하며 우익 유료 TV 뉴스 시장에서의 경쟁 회복을 목표로 합니다.

Newsmax (NYSE:NMAX) a déposé une importante plainte antitrust fédérale contre Fox Corporation et Fox News Network auprès du tribunal de district des États-Unis pour le district sud de Floride. La plainte affirme que Fox a abusé de sa position dominante sur le marché des actualités payantes conservatrices par des pratiques anticoncurrentielles.

La plainte détaille plusieurs tactiques d'exclusion de Fox, notamment des clauses de no-carry, des pénalités financières pour les distributeurs diffusant Newsmax et des clauses confidentielles visant à le rabaisser. Fox facturerait aux distributeurs près de 2,20 $ par abonné et par mois, soit le double de CNN et six fois plus que MSNBC.

Des communications internes citées montrent que des dirigeants de Fox considéraient Newsmax comme une menace concurrentielle après l'élection de 2020. La plainte demande des dommages-intérêts triplés en vertu de la loi fédérale et vise à rétablir la concurrence sur le marché des actualités payantes conservatrices.

Newsmax (NYSE:NMAX) hat vor dem US-Bezirksgericht für den südlichen Bezirk von Florida eine bedeutende bundesweite Kartellklage gegen Fox Corporation und Fox News Network eingereicht. Die Klage behauptet, Fox habe seine marktbeherrschende Stellung im rechtsgerichteten Pay-TV-Nachrichtenmarkt durch wettbewerbswidrige Praktiken missbraucht.

Die Beschwerde beschreibt mehrere ausschließende Taktiken von Fox, darunter No-Carry-Klauseln, finanzielle Strafen für Anbieter, die Newsmax führen, und vertrauliche Abwertungsvereinbarungen. Fox verlangt angeblich von den Anbietern fast 2,20 $ pro Abonnent und Monat, das Doppelte von CNN und das Sechsfache von MSNBC.

In der Klage zitierte interne Kommunikation zeigt, dass Fox-Manager Newsmax nach der Wahl 2020 als Wettbewerbsbedrohung betrachteten. Die Klage fordert nach Bundesrecht dreifache Schadensersatzansprüche und zielt darauf ab, den Wettbewerb im rechtsgerichteten Pay-TV-Nachrichtenmarkt wiederherzustellen.

Positive
  • Potential for significant financial compensation if lawsuit succeeds (damages would be trebled under federal law)
  • Represented by premier antitrust litigation firms with strong track record
  • Strong evidence presented including internal Fox communications showing anticompetitive intent
Negative
  • Legal proceedings could be lengthy and costly
  • Uncertain outcome of the lawsuit
  • Current business operations remain impacted by alleged anticompetitive practices

Insights

Newsmax's antitrust lawsuit against Fox News represents a significant legal challenge with potentially material financial implications for both companies.

Newsmax's federal antitrust lawsuit against Fox Corporation presents a substantive legal challenge with potentially significant financial implications. The complaint alleges Fox has abused its dominant market position in right-leaning news through anticompetitive practices including no-carry provisions, financial penalties for distributors that carry Newsmax, and confidential drag-down clauses.

The lawsuit's structure is particularly noteworthy - filed under both Sections 1 and 2 of the Sherman Act, which target different anticompetitive behaviors. Section 2 claims (monopolization) are notoriously difficult to prove but carry treble damages if successful. This trebling provision means Fox faces potentially substantial financial exposure.

Newsmax's choice of legal representation indicates a serious commitment to this litigation. Kellogg Hansen has significant experience in high-profile antitrust cases. The complaint's reference to specific internal Fox communications showing concern about Newsmax as a competitive threat strengthens their case theory of anticompetitive intent.

The complaint's allegations regarding Fox's $2.20 per subscriber carriage fees (double CNN's and six times MSNBC's) provide a concrete metric for potential damages calculation. For Newsmax shareholders, this case represents both significant litigation risk and potential upside if the company secures either a favorable settlement or judgment. The timeline for resolution will likely extend 2-3 years minimum given the complexity of antitrust litigation.

This lawsuit represents a significant development in the fragmented right-leaning news market ecosystem. The core allegations focus on distribution tactics that have allegedly prevented Newsmax from achieving broader carriage across key platforms including Hulu, Sling, and Fubo - all critical for reaching cord-cutting audiences.

The litigation highlights the central tension in the pay TV ecosystem: the leverage that "must-have" channels possess in carriage negotiations. Fox News has consistently ranked as one of cable's highest-rated networks, giving it substantial negotiating power with distributors. If Newsmax can prove its allegations that Fox weaponized this leverage specifically to block competitors, it could reshape carriage agreements industry-wide.

The market context matters significantly. Traditional pay TV has been in steady decline (3-5% subscriber losses annually), making each remaining subscriber more valuable. Meanwhile, the news segment has remained relatively resilient compared to other cable programming categories. This explains the heightened competition for viewership share.

Internal communications cited in the complaint suggesting Fox executives viewed Newsmax as a legitimate competitive threat following the 2020 election are particularly relevant. The complaint references former Fox host Tucker Carlson's warning that "an alternative like Newsmax could be devastating to us" - language that could bolster claims of anticompetitive intent.

For Newsmax investors, the litigation represents both opportunity and risk. A successful outcome could dramatically improve carriage terms and subscriber reach, but protracted legal battles consume management focus and financial resources. The case's progress will likely become a key metric for evaluating Newsmax's medium-term growth prospects.

Landmark Federal Antitrust Case Seeks Significant Damages

BOCA RATON, FL / ACCESS Newswire / September 3, 2025 / Newsmax Inc. (NYSE:NMAX) ("Newsmax" or the "Company") announced today that the Company's subsidiary, Newsmax Broadcasting, LLC, 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 suit, 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.

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.

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.

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.

Among the exclusionary tactics detailed in the complaint:

  • No-Carry Provisions: Fox conditions access to Fox News on agreements by distributors not to carry or to restrict competing right-leaning news channels.

  • Financial Penalties: If distributors carry Newsmax, Fox forces them to also carry low-demand channels like Fox Business or Fox Sports 2 in their most widely viewed tiers - triggering potentially tens of millions in extra fees.

  • Confidential Drag-Down Provisions: These clauses penalize distributors for placing Newsmax in basic packages by requiring simultaneous promotion of Fox's less popular channels.

  • Intimidation Campaigns: Fox has allegedly pressured its guests to not appear on Newsmax, as well as has run online smear campaigns and hired private investigators targeting Newsmax executives to damage the Company's credibility.

The result, the complaint asserts, is that Fox has deliberately blocked Newsmax's growth in critical distribution platforms such as Hulu, Sling, Fubo, and other major platforms.

Internal Fox communications cited in the complaint reveal that senior executives and talent saw Newsmax as a competitive threat following the 2020 election. Texts, emails, and memoranda show Fox leaders acknowledging that Newsmax's growing audience could "drastically change the landscape" of cable news, including:

  • Then-Fox host Tucker Carlson warned that "an alternative like Newsmax could be devastating to us."

  • Fox News President Jay Wallace told CEO Suzanne Scott that Fox was on "war footing" over Newsmax's rise.

  • Fox Chairman Rupert Murdoch instructed Fox News CEO Suzanne Scott that Newsmax "should be watched" as a result of press stories about the network.

  • Other executives tracked Newsmax's bookings and content, openly strategizing about ways to contain the new competitor.

Harm to Competition and Consumers

The lawsuit alleges that Fox's exclusionary conduct has had far-reaching consequences:

  • Higher Prices: By blocking competition, Fox has extracted supracompetitive carriage fees - charging distributors nearly $2.20 per subscriber per month, double CNN's fees and six times MSNBC's. These inflated costs have been or likely will be passed on to consumers.

  • Reduced Consumer Choice: Millions of right-leaning viewers who want an alternative have been denied access to Newsmax on affordable basic packages, leaving Fox as the only viable option.

  • Delayed Growth of Newsmax: Fox's practices have prevented Newsmax from reaching critical mass with distributors, advertisers, and audiences, costing the Company hundreds of millions in lost carriage fees and advertising revenue.

"Fox has sought to protect and expand its monopoly power in the right-leaning pay TV news market by engaging in a suite of anticompetitive behaviors," the complaint states. Fox's unlawful and exclusionary conduct "has harmed not just Newsmax and other competitors," but also "consumers and competition itself."

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 telecommunications, media, pharmaceuticals, and technology.

"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."

"Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over," said Christopher Ruddy, Newsmax CEO. "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."

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.

"American democracy depends on a vibrant and competitive media landscape," Ruddy added. "Fox has acted as a gatekeeper, silencing emerging voices and overcharging consumers. Our lawsuit seeks not only justice for Newsmax, but also to protect the rights of viewers who deserve choice and fair pricing."

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.

  • Order equitable relief to restore competition in right-leaning pay TV news.

Additional information regarding the suit is available here: https://www.newsmax.com/Newsmax/media/PDFs/NewsmaxFoxComplaint.pdf

About Newsmax
Newsmax Inc. is listed on the NYSE (NMAX) and operates, through Newsmax Broadcasting LLC, one of the nation's leading news outlets, the Newsmax channel. The fourth highest-rated network is carried on all major pay TV providers. Newsmax's media properties reach more than 40 million Americans regularly through Newsmax TV, the Newsmax App, its popular website Newsmax.com, and publications such as Newsmax Magazine. Through its social media accounts, Newsmax reaches 20 million combined followers. Reuters Institute says Newsmax is one of the top U.S. news brands and Forbes has called Newsmax "a news powerhouse."

For more information, please visit Investor Relations | Newsmax Inc.

Forward-Looking Statements
This communication contains forward-looking statements. From time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements can be identified by those that are not historical in nature. The forward-looking statements discussed in this communication and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. Newsmax does not guarantee future results, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. Forward-looking statements should not be relied upon as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this communication to conform our prior statements to actual results or revised expectations, and we do not intend to do so. Factors that may cause actual results to differ materially from current expectations include various factors, including but not limited to the timeline or outcome relating to litigation against Fox, our ability to change the direction of Newsmax, our ability to keep pace with new technology and changing market needs, the competitive environment of our business changes in domestic and global general economic and macro-economic conditions and/or uncertainties and factors set forth in the sections entitled "Risk Factors" in Newsmax's Annual Report on Form 10-K for the twelve months ended December 31, 2024, Newsmax's Quarterly Report on Form 10-Q for the three months ended March 31, 2025, and other filings Newsmax makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. Undue reliance should not be placed on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein.

Investor Contacts
Newsmax Investor Relations
ir@newsmax.com

SOURCE: Newsmax Inc.



View the original press release on ACCESS Newswire

FAQ

What are the main allegations in Newsmax's antitrust lawsuit against Fox News?

Newsmax alleges Fox engaged in anticompetitive practices including no-carry provisions, financial penalties for distributors, and intimidation campaigns to block competition in right-leaning pay TV news.

How much does Fox News charge distributors per subscriber according to the lawsuit?

According to the complaint, Fox charges distributors nearly $2.20 per subscriber per month, which is double CNN's fees and six times MSNBC's rates.

What damages is Newsmax seeking in its lawsuit against Fox News?

Newsmax is seeking monetary damages that would be automatically tripled under federal law, plus injunctive relief to stop Fox's alleged exclusionary practices.

Who is representing Newsmax in the lawsuit against Fox News?

Newsmax is represented by Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C. and Sperling Kenny Nachwalter, LLC, two leading antitrust litigation firms.

What evidence does Newsmax present in its antitrust lawsuit against Fox?

The lawsuit cites internal Fox communications, including messages from Tucker Carlson, Jay Wallace, and Rupert Murdoch, showing Fox executives viewed Newsmax as a competitive threat after the 2020 election.
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