Suit between SF dailies claims predatory ad rates

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Associated Press

Posted on June 25, 2013 at 7:02 PM

Updated Tuesday, Jun 25 at 8:02 PM

SAN FRANCISCO (AP) — The San Francisco Examiner has filed a lawsuit alleging that the city's dominant daily newspaper the San Francisco Chronicle slashed advertising prices to stifle competition.

Attorneys for Examiner owner San Francisco Newspaper Company LLC filed the suit Tuesday in superior court. It says Chronicle owner Hearst Corp. took advantage of greater corporate resources to "selectively and secretly" target Examiner advertisers with "discriminatory offers designed to injure the Examiner."

The two newspapers shared business operations and revenues from 1965 until 2000, when then-Examiner-owner Hearst acquired the Chronicle and sold the Examiner to a local family.

The suit claims the Chronicle charged significantly higher advertising rates as expected after the split, but reversed course when the new Examiner owners took over in 2011.

Chronicle managers declined comment on the lawsuit.

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