In the agreement, Valassis Direct Mail Inc. receives discounted postage rates for some of its advertisement mailers once its mail volume hits a certain level.

The Newspaper Association of America challenged the deal, citing a legal requirement that such deals not cause “unreasonable harm to the marketplace.”

But the U.S. Court of Appeals for the District of Columbia Circuit sided with the Postal Service.

At stake for newspapers is advertising revenue, especially from pre-printed inserts into Sunday editions.