Magazine article Editor & Publisher

Judge Dismisses $10 Million Advo Lawsuit against Philadelphia Newspapers

Magazine article Editor & Publisher

Judge Dismisses $10 Million Advo Lawsuit against Philadelphia Newspapers

Article excerpt

A LAWSUIT BROUGHT by direct mailer Advo Inc., against Philadelphia Newspapers Inc., has been dismissed by a U.S. district judge in Philadelphia.

The $10 million lawsuit was filed last summer. In it, Advo charged that the Philadelphia Inquirer and Philadelphia Daily News engaged in monopolistic trade practices and predatory pricing in an effort to drive Advo from the Philadelphia market.

Specifically, Advo alleged that PNI conducted an "unlawful scheme" to maintain a monopoly on the advertising materials market in the area, including ROP advertising and advertising circulars. Also, Advo accused PNI of interfering in contractual relations with its customers.

Advo charged that PNI gave advertisers with large ROP contracts credit towards their ROP contract commitments and significant ROP rate discounts if they also participated in a total market coverage program.

Because PNI could afford to operate its TMC program at a loss for a period of time, Advo alleged, PNI offered Advo's biggest customers "free or deeply disounted ROP advertising in conjunction with extremely discriminatorily low rates for distributing advertising circulars via PNI's TMC program. …

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