Newsroom

OFT accepts undertakings from Johnston Press on Northern Ireland farming titles

144/06    6 October 2006   

The Office of Fair Trading has accepted undertakings given by the UK's second largest local newspaper publisher to address competition concerns relating to the supply of farming titles in Northern Ireland.

Johnston Press plc bought its competitor Local Press Ltd in November 2005 bringing together the two most significant farming publications in Northern Ireland. The OFT has accepted Johnston Press' decision to divest Farm Week while retaining its other title, Farming Life.

The transaction will not now be referred to the Competition Commission under the Enterprise Act 2002.

Vincent Smith, Senior Director for Competition at the OFT, said:

'The merger was found to result in a substantial lessening of competition in the supply of farming publications in Northern Ireland. However, we are content that the undertakings offered by Johnston will, when implemented, address our competition concerns in relation to this transaction.' 
 
NOTES

1. The Reference Test - The OFT has a duty to make a reference to the Competition Commission if the OFT believes that it is or may be the case that a relevant merger situation has been created; and the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

2. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.

3. Under section 73 of the Enterprise Act 2002 the OFT may, instead of making a reference, and for the purpose of remedying, mitigating or preventing the substantial lessening of competition, accept undertakings from parties concerned.

4. Before accepting any such undertakings the OFT must give notice of the proposals under Schedule 10 of the Enterprise Act 2002, and consider any representations made in accordance with that notice.

5. The text of this decision will be published in the mergers section as soon as is reasonably practicable.

Back to:2006