A federal judge in West Virginia Friday ruled that the Justice
Department's sole case against a merger -- one between rival newspapers
in an Appalachian city -- will proceed. It's good news for litigators in
the antitrust division, which have been waiting for a year. The case,
launched last May, seeks to unwind a merger combining two newspapers,
The Charleston Gazette and Charleston Daily Mail.
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The antitrust division is taking the unusual position that the merger
by the Daily Gazette Co. would substantially lessen competition by
creating a monopoly in that market.
The
two newspapers had already been operating under a joint operating
agreement, which meant advertising and other back-office functions were
combined under a federally approved program.
Tom Barnett, assistant attorney general of the antitrust
division, said, "We are pleased that the court has allowed the lawsuit
to proceed, and we look forward to presenting our case in court." The
court has yet to set a schedule for the case. -
Cecile Kohrs Lindell
