The testimony came as News America launched its defense in a Michigan state court case in which rival coupon agency Valassis has accused NAM of using its virtual monpoly in supermarket advertising to force clients to also take newspaper coupon deals.
- In the case, sources tell BNET that the judge has begun giving his instructions to the jury. Until a verdict arrives, BNET will continue reporting on allegations in the trial about the two agencies and their clients. See note to readers below.
Q. And did News America resist negotiating these in-store rates separately with Land O'Lakes? A. No, they did not. Q. Did News America Marketing at any time present the in-store FSI prices on a take it or leave it basis to Land O'Lakes? A. Take it or leave it as in you had to buy it all at once or you didn't? Q. Correct. A. No.She added later:
A. I don't think anybody wants to do business with someone that is forcing them into business.Valassis made back a little ground on cross-examination by demonstrating to York that she had been overpaying for Land O Lakes' promotions with News America. A Valassis lawyer established that LOL was paying a $5.25 CPM rate for NAM's services. York was then asked:
Q: This is a letter addressed to Wyeth from News America, it says we are confident rates will remain lower than they have in past years as News America is currently offering rates below $4 CPM for ROFR clients, you didn't know that, did you? A. I did know that. What is the date of this, please? Q. 2005. A. I did not know that.York said she did assume that larger marketers with bigger budgets got cheaper deals because of the bulk rates they could muster. (Note to readers: BNET will break into its delayed-but-chronological coverage of the trial when breaking news happens. We'll continue summarizing trial testimony even after the verdict if needs be.)
- See BNET's previous coverage of the in-store marketing wars:
- Valassis v. News America Closing Arguments: Why the Jury May Hand a Monopoly to Murdoch
- Valassis' Brown Says She Used Same Monopoly Tactics as News America
- Valassis Wins Directed Verdict Motion in News America Trial
- News America's Carlucci Again Accused of Threatening to "Destroy" Floorgraphics
- Valassis Exec Testifies on Anti-News America "Sock Puppets"; Paid Wyeth $1M to Stay
- News America's Emmel Testifies on Exclusivity Payments to Eckerd, Ahold, Harris Teeter
- Del Monte Allegedly "Held Hostage" by News America; Heinz Wanted to Rip Agency a "New A Hole"
- Nestle Exec Had "Tirade" Over News America's Pricing; Mixson Says He Always Does That
- News America Threatened to "Crush" Agency That Worked for Kroger
- News America Irked by Portrayal at Valassis Trial
- PepsiCo Exec: News America Charged an Extra $18 Mil. If We Didn't Take Bundled Deal
- 450 Jobs at Stake in Valassis Trial; Is This All CEO Schultz's Fault?
- News America's Carlucci Admits He's a "Godfather" Fan; Denies Unannounced Price Rises
- Murdoch Quoted at Valassis Trial: "Now You Have to Really Go After Them"
- News America Exec Testifies Unilever, Conagra and Kraft Got Higher Prices for Not Taking Bundled Ad Deals