RULING FAVORS NEWS AMERICA 2004-02-02 (1)

CHRISTINE BLANK

NEW YORK -- An Illinois appeals court judge has ruled in favor of News America Marketing In-Store, based here, in a lawsuit alleging that the coupon giant was grabbing too much share of the at-shelf coupon-dispenser market.

Menasha Corp, a paper products manufacturer in Neenah, Wis., had argued in the lawsuit that News America violates federal antitrust laws by signing retailers to exclusive contracts, which the appeals court did not agree with. In addition, Menasha claimed that News America's staff, who install and service the coupon dispensers, sometimes rip rival coupon devices off the shelves.

Menasha also argued that News America's coupon dispenser prices have risen, but News America showed its prices have actually fallen. "The record does not suggest that [News America] obtains an unusually high return on the capital invested in this business," wrote Judge Harry Leinenweber with the Northern District of Illinois appeals court in his decision.