Fox News filed a motion to dismiss antitrust claims brought by Newsmax in Wisconsin state court, escalating a legal dispute that has bounced between jurisdictions. Newsmax alleges that Fox engaged in anticompetitive conduct by pressuring cable and satellite providers to drop Newsmax's programming.
The case centers on whether Fox leveraged its dominant market position to exclude a rival. Newsmax contends that Fox threatened providers with loss of access to popular Fox content unless they removed Newsmax from their lineups. Fox denies the allegations and argues Newsmax lacks standing to pursue the antitrust claim.
The litigation began in Florida federal court but shifted to Wisconsin state court after a federal judge declined to intervene. Each outlet accuses the other of anticompetitive tactics. Fox previously sued Newsmax for defamation following the 2020 election, settling that dispute.
The antitrust claim implicates Section 2 of the Sherman Act, which prohibits monopolization and attempts to monopolize. Courts require plaintiffs to show the defendant possessed market power in a relevant market and engaged in exclusionary conduct without business justification. Newsmax must establish that Fox's actions harmed competition or excluded rivals anticompetitively.
Cable and satellite distribution remains a bottleneck in the media industry. Exclusion from these platforms materially impacts a news outlet's reach and revenue. If Newsmax succeeds, it could expose Fox to damages and injunctive relief requiring restoration of carriage agreements.
The motion to dismiss will likely test whether Newsmax adequately pleaded anticompetitive effects and market power. Fox's defense strategy appears focused on procedural grounds rather than the merits of the underlying conduct allegations. The Wisconsin court's ruling will determine whether Newsmax proceeds to discovery or faces dismissal before trial.
THE BOTTOM LINE: Fox's aggressive legal posture risks