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Papers' Action on Online Fees Could Escape Antitrust Laws

A meeting hosted by the Newspaper Association of America last week brought together top newspaper executives to discuss charging for online content and other topics. The summit raises key questions: Can newspapers collectively decide to put content behind a pay wall? And if they did, would that violate antitrust laws?

Based on the industry's track record -- such as its inability to standardize ad formats and billing -- it would be a miracle if newspapers managed to simultaneously erect pay walls. But if they did, the courts might uphold it. Northwestern law professor Fred McChesney says it's possible for newspapers to collectively charge for online content because the courts have upheld similar arrangements in the past.

The government might also be inclined to consider the health of the industry when making any decisions regarding a collective action by newspapers, he says. "Generally, newspapers are in trouble. It could well be that without this arrangement, newspapers are going to go out of business. That could be a point in their favor."

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