Most recently, Newsmax, a rising star in the radical right conservative media ecosystem, has sued industry behemoth Fox News for allegedly following anticompetitive practices. The case was assigned to a federal judge in Florida. It claims Fox News has used its vast market power to prevent rival, right-leaning channels from accessing their target viewers.
Fox News, purveyed by Donald Trump’s best buddy billionaire Rupert Murdoch, is still the default media home for American conservatives. Its popularity hasn’t dimmed with home viewers either. The network’s major companies have a market capitalization of almost $26 billion (£19 billion). Newsmax claims that Fox News has employed coercive tactics against television providers to suppress competition for viewership, thereby solidifying its dominance in the conservative media landscape.
In its lawsuit, Newsmax contends that Fox News has profited from “exclusionary contracts and intimidation tactics for years.” The network contends that these practices have suppressed competition and reduced viewer options in the right-wing media space. Christopher Ruddy, CEO of Newsmax, emphasized the seriousness of the allegations, stating:
“Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over.”
The lawsuit comes as Fox News faces its own significant lawsuits. These challenges came to the forefront just after Joe Biden’s hard-fought victory over Donald Trump in the 2020 presidential election. In turn, the network came under heavy fire for airing right-wing conspiracy theories about Michigan’s election results. This has triggered some of the most serious accusations of “verifiably false lies” against it, particularly from companies like Dominion.
A spokesperson for Fox News dismissed the lawsuit as a reflection of Newsmax’s inability to compete in the marketplace. The spokesperson stated:
“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 result of this legal clash is likely to have serious consequences for the right-wing media environment in the United States. If the court finds in favor of Newsmax, it may pave the way for increased competition among conservative news outlets. A ruling in favor of Fox News would further entrench its role as the most influential player in this space.