Newsmax files antitrust suit against Fox, claiming ‘exclusionary’ tactics in carriage deals

The far-right commentary channel Newsmax has filed an antitrust lawsuit against its biggest rival in the conservative cable world, FNC.

The lawsuit claims that FNC has used its high ratings to steer pay TV providers away from offering Newsmax on their lineups or relegating the channel to higher tiers that tend to be less popular with consumers.

In some of its court filings, Newsmax directly labels itself as operating in the field of right-leaning, conservative cable news targeted at viewers with similar viewpoints. 

The suit cites multiple internal emails that became public record from when FNC was being sued by Dominion Voting Systems for airing false and misleading information about the 2020 election that Newsmax says illustrates how FNC executives and talent communicated about their concerns over the channel and may have strategized ways to keep it at bay after Donald Trump’s loss to President Joe Biden triggered a demand for pro-Trump content.

Newsmax also alleges that FNC has used a variety of “exclusionary” and “intimidation” tactics, including clauses in its agreements with TV providers that bar them from carrying select rival networks. It also claims FNC has used tactics to give providers opting to carry Newsmax less favorable terms in their distribution deals. 

FNC has also, according to Newsmax’s suit, taken unspecified actions to attempt to prevent vMVPDs such as Hulu + Live TV, Sling and Fubo from carrying a wider range of conservative opinion channels, though all three of those providers have since started carrying it.

The suit also alleges that Newsmax discussed their concerns with Fox execs who responded with “welcome to the big leagues.” It’s not clear when that alleged exchange took place.

All told, Newsmax is alleging FNC is violating federal and Florida antitrust laws and a Florida law barring deceptive and unfair trade practices. Newsmax is headquartered in Florida and filed the suit in the Southern Florida U.S. District Court. The network is requesting a jury trial to determine the outcome of its claims. 

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Newsmax also claims that FNC is collecting as much as $2 or more per subscriber from pay TV providers as part of standard industry contracts that require companies such as Comcast, DirecTV and YouTube TV to pay a negotiated rate for each person who signs up for a package that includes the network in question.

The lawsuit does not reveal what specific providers are paying for FNC.

The suit claims that amount is often second only to ESPN, which has long been known to command high rates for access. 

Multiple reports note that Fox has labeled the lawsuit as meritless and points the finger at Newsmax’s failure to compete in the market. 

“Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers,” said FNC in a statement.

Newsmax and OAN, which both offer up right-leaning commentary and opinion, have scored some significant carriage deals in the past year. 

Newsmax’s website says the network is available in over 100 million homes compared to Fox’s 60 million, though it’s not clear what criteria Newsmax is using to come up with that number.

The network is available nationally from legacy carriers DirecTV, Dish and Xfinity. In addition to the other vMPVDs, the network is also carried on ZipWave.

Newsmax ratings are difficult to gauge, though most reports indicate it often finishes significantly behind Fox. FNC is known for its dominating numbers.

This story has been updated from its original version to include Fox’s statement on the lawsuit.