Trinity sales could go before Competition Commission
By Leah McBride Mensching, Tuesday 5 February 2008 at 22:56 :: Competition :: #1209 :: rss
The UK Competition Commission may weigh in on the sale of eight Trinity Mirror titles to Dunfermline Press Ltd. over concerns of competition restriction, as the Scottish firm would have control over the only two newspapers in the Eton, Windsor and Slough area if the sale goes through, HoldtheFrontPage reported Tuesday
The Office of Fair Trading has asked Dunfermline to address the competition concerns with a series of “satisfactory undertakings,” which will determine whether the OFT refers the sale to the Competition Commission.
“In an obvious case like this, our aim will still be to spare the costs of reference (to the Commission) while restoring the benefits of competition lost by the merger,” Simon Pritchard, senior director of mergers at OFT, told HoldtheFrontPage.
Thanks to online competition, Dunfermline may not have a complete monopoly over local advertising; however, the OFT is still concerned the publishing group would be able to raise prices and reduce service, as the merger eliminates competition between the Observer and Express newspapers in that area, according to HoldtheFrontPage.
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