Coming third in the large-sized newspapers category - those with a circulation of more than 250,000 copies - judges praised the project for its integration of new and old media.
This year's judging panel was looking for media groups who built communities and involved readers in producing editorial content.
My Telegraph's engagement with readers by allowing them to actively contribute through blogs and interaction with other users was praised by the judges as 'the best deployment of blogging yet seen in a newspaper anywhere in the world'.
Topping the large category was a multimedia campaign by Polish paper Gazeta Wyborcza to save the Rospuda valley - a nature reserve under threat from a new motorway.
Using weblogs, podcasts and the printed edition, the campaign organised protest marches and eventually stopped construction of the road.
In second place was Spanish publication El Pais' online magazine for young artists - EP3.es.
The winner of the category for titles with a daily circulation of less than 100,000 copies was Germany's Bocholter-Borkener Volksblatt, which was praised for matching up new media with hyper-local content.
In the mid-sized newspaper class, Norwegian publisher Dagbladet was chosen by the jury for the commercial and community opportunities created in developing its online travel site, where online users are given the chance to see their photos and comments published in print.
A full list of the winners, which were selected from 50 entries across 18 countries, can be seen here.