Newsmax sues Fox in antitrust case over exclusionary pay-TV tactics

Newsmax filed an antitrust lawsuit on Wednesday in the U.S. District Court for the Southern District of Florida, accusing Fox News and parent Fox Corporation of orchestrating an exclusionary scheme to block competition in the market for right-leaning pay television news. The complaint alleges Fox used its control of must-have programming to coerce distributors into terms that prevent or marginalize rival channels such as Newsmax, costing the upstart network audience, carriage and revenue.

The suit, brought by Newsmax Broadcasting LLC, lays out three central tactics it says Fox has used to exclude competitors. According to the complaint, Fox conditions access to its high-demand channels on explicit or tacit no-carry provisions that require distributors not to carry other right-leaning news channels. The complaint also contends Fox imposes financial penalties by forcing distributors to carry and pay high fees for lesser-watched Fox channels, and inserts other contractual barriers that make it harder for competitors to secure meaningful distribution. Michael J. Guzman, lead counsel for Newsmax, said in a statement that Fox’s behavior is a “textbook abuse of monopoly power.”