WAN-IFRA

Shaping the Future of the Newspaper

Date

Fri - 25.05.2012


UK distribution stays protected by competition law opt-out

UK distribution stays protected by competition law opt-out

The UK Office of Fair Trading decided Wednesday to continue to protect newspaper distribution through an opt-out from competition law, Media Guardian reported.

After a long investigation, the OFT said it has looked over the 14 year-old national newspapers code of practice and decided some restrictions on wholesalers should be made less stringent. Lord Mandelson, the new business secretary, is in charge of the code.

Currently, the UK's wholesalers enjoy “absolute territorial protection” (ATP) to distribute newspapers and magazines, meaning they receive elite access to precise areas of the country, retailers stocking newspapers and magazines cannot choose between other wholesalers, according to Media Guardian.

The OFT said this system is good for newspapers due to their “time-sensitivity,” in needing to be delivered quickly. However, magazine sales are not as time-sensitive, which means there is “greater scope” for competition between wholesalers, Media Guardian reported. The OFT is leaving publishers, distributors and wholesalers in charge of deciding if the current establishment is complying with the competition law.

“We are recommending a release from regulatory restrictions, while the industry should now take a close look at its own arrangements,” said John Fingleton, the OFT chief executive, according to Media Guardian.

Author

Alexandra Zeumer

Date

2008-10-23 07:55

Shaping the Future of the Newspaper


© 2012 WAN-IFRA - World Association of Newspapers and News Publishers

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