News Corp. unit in SF under scrutiny

A U.S. subsidiary of Rupert Murdoch's News Corp. with an office in San Francisco has caught the eye of the Justice Department.

US investigators are looking into potential antitrust activities of Murdoch's News America Marketing Group, which specializes in producing in-store ads, coupons, advertising inserts and other promotional materials for supermarkets and retail outlets worldwide. Investigators reportedly are seeking documents relating to a 2009 trial of a suit against News America by a New Jersey advertising company, Floorgraphics, which had accused News America of, among other things, hacking into its computer systems and lying to its customers. The case was settled for an undisclosed sum, and News America subsequently acquired Floorgraphics.