WASHINGTON D.C.
The Department of Justice filed a civil antitrust lawsuit today seeking to block Tribune Publishing Company, publisher of the Los Angeles Times, from acquiring the Press-Enterprise and The Register, which were owned by the now-bankrupt Freedom Communications, according to federal officials.
The lawsuit filed in federal court alleges that the Los Angeles Times and the Register account for 98 percent of newspaper sales in Orange County, and the Los Angeles Times and Freedom’s newspapers together account for 81 percent of English-language newspaper sales in Riverside County.
The legal action comes on the heels of a warning by the Justice Department to Tribune Publishing that it would block its the acquisition of Freedom Communications if the Chicago-based Tribune offered the winning bid. Tribune did and acquired the bankrupt Freedom with a winning bid on Wednesday of $56 million.
“If this acquisition is allowed to proceed, newspaper competition will be eliminated and readers and advertisers in Orange and Riverside Counties will suffer,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Newspapers continue to play an important role in the dissemination of news and information to readers and remain an important vehicle for advertisers. The Antitrust Division is committed to ensuring that competition in this important industry is protected.”
Tribune will seek bankruptcy court approval of its acquisition on March 21.
Tribune Publishing Company is a Delaware corporation headquartered in Chicago. It publishes 11 major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania.
To read Department of Justice lawsuit click DOJ Lawsuit