Newsmax just accused Fox News of one scheme that could cost them hundreds of millions

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The cable news world just got turned upside down.

A major lawsuit dropped that exposes some dirty business practices in conservative media.

And Newsmax just accused Fox News of one scheme that could cost them hundreds of millions.

Newsmax files bombshell antitrust lawsuit against Fox News

Conservative media outlet Newsmax filed a federal antitrust lawsuit against Fox Corporation and Fox News Network in Florida federal court on Wednesday.

The lawsuit accuses Fox of running an elaborate scheme to block competitors from reaching viewers – and it’s backed by some explosive internal communications from Fox executives.

Newsmax is represented by two premier antitrust litigation firms: Kellogg, Hansen, Todd, Figel & Frederick, and Sperling Kenny Nachwalter.

These aren’t small-time lawyers – they specialize in taking down monopolistic giants in telecommunications, media, pharmaceuticals, and technology.

The lawsuit seeks damages under federal Sherman Act violations, which means any damages awarded would be tripled under federal law.

Fox could be looking at a massive financial hit if Newsmax proves its case.

"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."

Fox fired back immediately, saying "Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers."

The alleged scheme to crush competition

Here’s where it gets interesting – and ugly.

According to the lawsuit, Fox leverages its "must-have" status with cable distributors to squeeze out competitors through three specific tactics.

First, Fox allegedly forces distributors into "no-carry" agreements – basically telling cable companies they can’t have Fox News unless they agree not to carry competing right-leaning channels like Newsmax.

Second, if distributors do carry Newsmax, Fox punishes them by forcing them to also carry low-demand channels like Fox Business or Fox Sports 2 in their most expensive tiers.

This triggers potentially tens of millions in extra fees that get passed on to consumers.

Third, Fox uses what the lawsuit calls "confidential drag-down provisions" – clauses that penalize distributors for putting Newsmax in basic cable packages.

The result? Newsmax claims Fox has deliberately blocked their growth on major platforms like Hulu, Sling, and Fubo.

"Fox employs at least three anticompetitive means to exclude competing providers of right-leaning video content from the market," the complaint states.

But the most damning evidence might be Fox’s own internal communications.

Fox executives caught red-handed

The lawsuit includes texts, emails, and memos that show Fox executives viewed Newsmax as a serious competitive threat after the 2020 election.

Tucker Carlson – who was still at Fox at the time – 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.

Chairman Rupert Murdoch himself instructed CEO Suzanne Scott that Newsmax "should be watched" as competition.

Other executives tracked Newsmax’s bookings and content while "openly strategizing about ways to contain the new competitor," according to the lawsuit.

The lawsuit also alleges Fox ran intimidation campaigns, pressuring guests not to appear on Newsmax and hiring private investigators to target Newsmax executives.

If true, this goes way beyond normal business competition.

What this really means for conservative viewers

Look, here’s what should make you angry about this whole situation.

Fox has allegedly been extracting what the lawsuit calls "supracompetitive carriage fees" – charging distributors nearly $2.20 per subscriber per month.

That’s double what CNN charges and six times what MSNBC charges.

Those inflated costs get passed on to you, the consumer, in higher cable bills.

Meanwhile, millions of right-leaning viewers who want an alternative to Fox have been denied access to Newsmax on affordable basic packages.

You want to know what this really shows? It shows that even in conservative media, corporate giants can act just like Big Tech monopolies – crushing competition and gouging consumers.

"Fox has acted as a gatekeeper, silencing emerging voices and overcharging consumers," said Newsmax CEO Christopher Ruddy.

The timing here isn’t coincidental either. This lawsuit comes as more conservatives are questioning whether Fox News really represents their interests, especially after some controversial coverage decisions.

If Newsmax proves Fox has been using monopolistic tactics to block competition, it exposes a system where corporate boardrooms – not viewers – decide what conservative voices get heard.

And that should concern anyone who believes in free market competition and consumer choice.

Here’s the thing that should really bother conservatives: if these allegations are true, Fox has been playing the same game as every other monopolistic corporation while wrapping themselves in conservative principles.

They’ve allegedly used their market dominance to extract higher profits and block competitors – exactly the kind of anti-competitive behavior conservatives usually oppose.

The lawsuit seeks to declare Fox’s conduct unlawful, award monetary damages, and force Fox to stop these exclusionary practices.

If Newsmax wins, those damages get tripled under federal antitrust law – which could send a powerful message to any company that thinks it can monopolize public discourse.

Whether you watch Fox, Newsmax, or neither, this case matters because it’s about whether competition or coercion decides what news Americans can access.

And in a free market, competition should win every time.


¹ Newsmax Inc., "Newsmax Files Lawsuit Against Fox News, Antitrust Case Alleges Major Violations," Newsmax, September 3, 2025.

² Alex Griffing, "JUST IN: Newsmax Sues Fox News Alleging Monopoly Abuses," The Daily Wire, September 3, 2025.

 

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