Documents shed light on allegations of Torstar-postmedia conspiracy

OTTAWA - Torstar Corp. and Postmedia Network Canada Corp. agreed to lists of employees who would be terminated as part of their deal last year to swap dozens of mostly community newspapers, Canada’s competition watchdog alleges in court documents. The Competition Bureau also claimed in documents used to obtain search warrants earlier this month that the companies conspired to divide up sales, territories, customers and/or markets for advertising or flyer distribution in certain regions. “Postmedia and Torstar were competitors or potential competitors prior to the transaction,” Pierre-yves Guay, the acting associate deputy commissioner of competition, wrote in the application for the search warrants.

Under the agreement between Torstar and Postmedia last year, 41 newspapers changed hands and 36 were closed, mainly in Ontario regions served by multiple publications, at a cost of nearly 300 jobs.

As part of the deal, the watchdog said the companies included lists of which Torstar and which Postmedia employees would be terminated and agreed to a transitional services agreement.

“It is my understanding that the only employees that will continue to be employed are from those acquired properties that were announced to remain open,” Guay wrote. The companies also agreed they would not compete in specific areas for five years as part of deal in November. AP/CP