By Nate Raymond
NEW YORK (Reuters) - News Corp (O:NWSA) agreed to pay $244 million (£175.2 million) to settle a lawsuit accusing it of monopolizing the market for in-store promotions at more than 50,000 retail stores across the United States, a lawyer for the plaintiffs said on Monday.
The settlement with Rupert Murdoch's company abruptly ended a trial that had begun earlier in the day, when jurors in Manhattan federal court heard opening arguments in what had been a $2 billion lawsuit.
It was disclosed in court by James Southwick, a lawyer for consumer packaged goods companies including Dial Corp and Kraft Heinz Co (O:KHC), which had been suing News Corp.
U.S. District Judge William Pauley must still approve the settlement.
The plaintiffs had been seeking $674.6 million, a sum that could have been tripled to more than $2 billion under federal antitrust law.
News Corp was accused of monopolizing the U.S. market for in-store promotion services, where it acts as a middleman to help companies promote goods through coupon dispensers, electronic signs, end-of-aisle displays and shopping cart ads.
The plaintiffs said News Corp has dominated this market since 2004 by locking up exclusive long-term contracts with retailers, and by 2009 commanded a 90.5 percent market share.
In 2014, News Corp's last rival, Valassis Communications Inc [VCII.UL], abandoned the business, according to court papers.
The plaintiffs said News Corp's anti-competitive conduct forced them to pay artificially high prices to promote such goods as Dial soap and Heinz ketchup, resulting in overcharges ranging from 29.9 percent to 39.6 percent from 2009 to 2016.
Under Monday's settlement, News Corp agreed not to enter exclusive contracts with retailers lasting longer than 2-1/2 years, unless retailers first ask for such contracts in writing, Southwick said. This agreement will remain in place for five years.
The case is Dial Corp et al v. News Corp et al, U.S. District Court, Southern District of New York, No. 13-06802.