Anti-trust issues in L.A. and Cleveland?

A long time ago, alternative newspapers used to be watchdogs of the mainstream newspapers. The San Francisco Bay Guardian, for example, used to harp constantly on the anti-completive agreements between the San Francisco Examiner and the Chronicle. Now, alternative “newsweeklies” are themselves getting into hot water. The Los Angeles Times says the sweetheart deal that ended alt-weekly competition in LA and Cleveland may violate anti-trust laws.

Legal experts, however, were skeptical. “This could raise rather interesting antitrust issues,” said Don Hibner, an expert on antitrust with law firm Sheppard, Mullin Richter & Hampton. “On its face, it doesn’t seem right.”
Contracts or written agreements that reduce output or raise prices are prohibited by the Sherman Antitrust Act. Even though both New Times and the Weekly are distributed free, there probably will be an increase in their advertising rates, Hibner said.
“That’s going to injure advertisers,” he said. “They will likely pay more and people will have less to read, that’s a reduction of output. It looks like they’re agreeing to pay money to stop the other guy from competing in their backyard. That’s what antitrust laws are designed to prevent.”

I say, if the owners alt-weeklies are going to act as if all that matters is the pursuit of money, then they should have to face the same rules and regulations other companies face. Usually, newspapers get to do whatever they want because the government won’t take them on. If these guys broke the law, throw the book am ‘em. Let their punishment serve as an example for other media owners who want to throw people out of work and stifle the voices of their employees.

Other coverage: Old Times Recalled by the LA Times and Free Times Folds by the Cleveland Plain Dealer.

Thanks to MediaNews.org for the links.

UPDATE: From the LA Weekly, covering its own story:

The reaction was short and blunt from Michael Lacey, executive editor of New Times newspapers. “Go fuck yourself,” said Lacey, who was reached Wednesday morning at a Santa Monica beachside hotel. He slammed down the phone without responding to questions.

The article also points out that the New Times came into Los Angeles by buying two small weeklies, then closing them.

*Note: The original links died. Sorry.

San Francisco Bay Guardian,San Francisco Examiner,Cleveland Plain Dealer,alternative newspapers