Newsmax files antitrust lawsuit against Fox

Newsmax on Wednesday filed a federal antitrust lawsuit against cable news rival Fox, alleging the network used unfair practices to illegally stifle competition among conservative cable networks. Why it matters: The lawsuit alleges Fox News has used its viewership dominance to coerce pay-TV providers to sign exclusionary contracts that prevent cable networks like Newsmax from getting adequate distribution.Newsmax said that has impacted its growth potential on digital platforms such as Hulu, Sling and Fubo.Zoom in: In a statement, Newsmax said Fox "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."It cited several examples of exclusionary tactics allegedly used by Fox to strong-arm cable distributors, such as imposing conditions that forbid distribution partners from carrying competing right-leaning news channels and penalizing them for carrying competitive programming.The complaint also alleges 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 other side: "Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can't attract viewers," Fox News said in a statement. Between the lines: The lawsuit, filed in United States District Court for the Southern District of Florida, makes the case that Fox's tactics didn't just harm Newsmax, but consumer choice as well. "By keeping rivals off affordable distribution packages, Fox has denied millions of Americans the diversity of viewpoints that a healthy marketplace of ideas requires," the company said in a statement.Zoom out: Fox and Newsmax have a contentious history. In its lawsuit, Newsmax cited evidence that Fox News executives were threatened by Newsmax's ratings growth following the 2020 election. What's next: Newsmax is seeking monetary damages as well as court orders that would prevent Fox from continuing exclusionary contracts and mandate "equitable relief to restore competition in right-leaning pay TV news."

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