The complaint was filed Tuesday evening with the Australian federal justice system, the day after Crikey published threats of legal action he said he had received from Mr. Murdoch's lawyers following an article published on the role of Fox News in the assault on the Capitol in Washington, January 6, 2021.
The small news site had made an unusual request on Monday, asking to be sued in court by the boss of Fox News, in an open letter published as an advertisement in the New York Times, in order "to test the important question of the freedom of public interest journalism in a courtroom".
Lachlan Murdoch is the eldest son of billionaire Rupert Murdoch, owner of Fox News, The Wall Street Journal, The New York Post and many other media outlets across the planet.
According to his lawyers, in a June article titled 'Trump is a confirmed unhinged traitor and Murdoch is his unindicted co-conspirator', the media boss's son was defamed 22 times.
The article largely focused on former US President Donald Trump's role in the Capitol storming.
It didn't specifically name Lachlan Murdoch, but referred to "Murdochs and the swarm of wormy commentators at Fox News".
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While Crikey deleted the article the day it was published in a 'goodwill gesture' after being contacted by Mr Murdoch's lawyers, the text was later put back online.
The news site's editor-in-chief and president said Wednesday that the outlet "stands behind its story."
"We look forward to defending our independent and public interest journalism in court against the considerable resources available to Lachlan Murdoch," they said.
"We believe that the coverage of the events of January 6 on Capitol Hill ... and Fox News' role in (these) is perfectly legitimate."
The case has had a stir in Australia, where the Murdoch family remains a major player in the local media despite its global reach.
Former Australian Prime Minister Malcolm Turnbull even interfered in the controversy on Wednesday, saying he was "very surprised" by Mr. Murdoch's decision.
"I find it hypocritical," he told a radio show, adding that the Murdochs were "always complaining about free speech and the harshness of defamation laws. ."
Australia's harsh defamation laws offer little protection to the media and have earned the country the nickname "defamation capital of the world".
© 2022 AFP