Newsmax Inc. NMAX on Wednesday filed a major federal antitrust lawsuit against Fox Corporation’s FOX FOXA and Fox News Network in the United States District Court for the Southern District of Florida.
On Friday, a federal judge dismissed Newsmax’s antitrust lawsuit against Fox News just a day after it was filed. Newsmax filed a five-count complaint alleging violations.
The second, third, fourth, and fifth counts in the complaint, however, incorporate all preceding allegations, thus rendering the complaint an impermissible “shotgun pleading.
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The suit accused 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 sought damages. Under federal law, any damages awarded in this case will be trebled – meaning Fox could face significant financial liability if Newsmax prevailed.
The complaint alleged 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:
- Fox conditions access to Fox News on agreements by distributors not to carry or to restrict competing right-leaning news channels.
- 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.
- These clauses penalize distributors for placing Newsmax in basic packages by requiring simultaneous promotion of Fox’s less popular channels.
- Fox has allegedly pressured its guests not to appear on Newsmax, as well as run online smear campaigns and hired private investigators targeting Newsmax executives to damage the Company’s credibility.
The complaint asserted that Fox has deliberately blocked Newsmax’s growth in critical distribution platforms such as Hulu, Sling, Fubo, and other major platforms.
“Failure to comply with this Order may result in dismissal of the case without further notice,” the judge wrote in the order on Friday.
The dismissal order notes that Newsmax may file an amended complaint by September 11, 2025. The amended complaint must not contain any successive counts that incorporate all prior allegations.
Price Action: NMAX stock closed at $13.31, and FOX stock closed at $55.97 on Friday.
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Image: Shutterstock/PJ McDonnell
