Sept 3 (Reuters) - Newsmax ( NMAX ) sued its larger
conservative news rival Fox Corp ( FOXA ) in federal court in
Florida on Wednesday, accusing the media giant of suppressing
competition in the U.S. market for right-leaning pay TV and
leaving consumers with less choice.
The lawsuit in West Palm Beach alleged Fox and its affiliate
Fox News Network violated antitrust law by coercing distributors
to exclude competitors such as Newsmax ( NMAX ) or to restrict their
reach.
"Fox's campaign to stunt Newsmax's ( NMAX ) business has delayed, for
almost a decade, Newsmax's ( NMAX ) growth in pay TV distribution," the
lawsuit said.
In a statement, Newsmax ( NMAX ) CEO Christopher Ruddy said his
company was focused on restoring fairness to the market and
ensuring that Americans have "real choice" in the news they
watch.
The lawsuit seeks unspecified monetary damages and a court
order that would bar Fox's alleged misconduct.
"Newsmax ( NMAX ) 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 Media said in a statement.
Fox News has maintained a strong lead over its cable news
competitors. Republican U.S. President Donald Trump promoted
Newsmax ( NMAX ) during his first administration, while he often
criticized other outlets' coverage of him. The lawsuit said
Newsmax's ( NMAX ) ratings increased before and after the 2020
presidential election.
In July, Trump Media & Technology Group launched its
TV streaming platform, Truth+, which featured Newsmax ( NMAX ).
Newsmax ( NMAX ) was founded in 1998 and launched Newsmax TV as a pay
television channel in 2014. It debuted this year as a publicly
traded company. Newsmax ( NMAX ) said in the lawsuit that its programming
offered an alternative to what it called Fox's "establishment
platform."
Newsmax ( NMAX ) says its media properties reach more than 40 million
Americans.
In August, Newsmax ( NMAX ) agreed to pay $67 million to Dominion
Voting Systems to settle a defamation lawsuit over false claims
that the voting machine company rigged the 2020 election against
Trump. Newsmax ( NMAX ) said it stood by its coverage but did not believe
it could get a fair trial.
Last year, the outlet reached a confidential settlement with
voting machine maker Smartmatic, which alleged it was defamed by
Newsmax's ( NMAX ) false claims that its machines were rigged.
Fox Corp ( FOXA ) and Fox News in 2023 settled a similar defamation
lawsuit by Dominion Voting for $787.5 million.