The Press: A Promise to Behave

Three years ago the U.S. Department of Justice took out after American News Co., biggest U.S. wholesale magazine distributor, and its subsidiary, Union News Co., biggest newsstand vendor. American, the Government charged in an antitrust suit, used its newsstand subsidiary as a weapon to grab exclusive national distribution rights for magazines, and Union (at American’s direction) refused to sell any publication without American’s consent. To end this restraint of trade and discrimination against publishers, the Justice Department went to court to force American to give up its control of Union News.

Last week the companies promised to behave in a consent decree and the Justice Department dropped its attempt to split them. Union News, though still controlled by American, must “buy, display and sell magazines on the basis of [its] own interests” as a newsstand vendor. The decree also prohibits American telling publishers that it can get preferential treatment on Union newsstands.