UK trade body will not investigate distribution agreements

These include the entry of a number of publishers in to new distribution contracts and the exit of Dawson News, the industry's third largest wholesaler. Media Week reported today, an OFT statement, that said it, "has considered the impact of this tender round, among other issues raised in its consultation, and believes there remains a reasonable prospect of further market changes which could benefit consumers." The OFT decided that these market conditions are likely to continue to benefit consumers. However the decision has not completely cleared the sector of competition malpractice, as it found that there are still reasonable grounds to believe some aspects of newspaper and magazine distribution restrict or distort competition and the OFT did not rule out a later review of the sector, within the next two years.