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Newspaper and magazine distribution

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Update 16 December 2011

The OFT is carefully considering the submissions from interested parties regarding its prioritisation assessment. It now intends to publish its prioritisation decision early in the New Year.

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Prioritisation assessment of a potential update review

In September 2009, the OFT decided not to refer the newspaper and magazine distribution sector to the Competition Commission. The OFT committed at that time to consider, after a period of two years, whether to undertake a short update review of the sector in relation to the features examined in that decision.

In doing so, it noted that such a review would only take place where it could be justified following an assessment under the OFT's prioritisation principles (pdf 121kb) undertaken at that time. It noted that the impact on consumer welfare was likely to be a particularly important consideration as to whether such a review should take place.

The OFT has had discussions with key industry parties regarding the potential review and invites interested parties to submit information and supporting evidence by Friday 14 October 2011 regarding whether such a review can be justified by reference to the OFT's prioritisation principles. We will consider the submissions provided and expect to make a decision by the end of 2011 on whether to undertake such a review.

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Background

In September 2009, the OFT decided that, although certain features of the sector prevented, restricted or distorted competition, developments benefiting consumers could come about from industry parties self-assessing their distribution agreements following competition guidance provided by the OFT. In view of that, the OFT considered that it would not be feasible for the Competition Commission to obtain the requisite evidence at that point in time properly to assess how the supply chains were likely to evolve in the short term, and hence the impact and effectiveness of any remedies.

See press release OFT announces decision on newspaper & magazine distribution sector (24 September 2009). 

Date of opening: September 2011

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Contacts

Team Leader: Marc Maxfield (020 7211 8110, marc.maxfield@oft.gsi.gov.uk

Project Director: Dan Moore (020 7211 5828, dan.moore@oft.gsi.gov.uk

Senior Responsible Officer: Louis Christofides (020 7211 8935, louis.christofides@oft.gsi.gov.uk)

Case Reference: CE/9544/11




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