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Trade News Archive October 08 September 08 August 08 July 08 June 08 May 08 April 08 March 08 February 08 January 08
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23rd October 2008
Review for magazine wholesaler competition
Laws restricting competition among magazine wholesalers should be open to review, the Office of Fair Trading (OFT) has said.
The industry regulator made the recommendation after completing a long-running investigation into the opt-out laws that govern newspaper and magazine distribution.
Its study focused in particular on the practice of "absolute territorial protection" (ATP), which affords wholesale suppliers exclusive access to specific regions and prohibits choice among retailers.
While insisting that ATP is justified for newspapers because their time-sensitivity necessitates speedy and reliable delivery, it said the same is not necessarily true for magazines.
John Fingleton, OFT chief executive, commented: "The OFT has brought together three strands of work which reflect the most detailed and thorough analysis of the sector done in recent years.
"We are recommending a release from regulatory restrictions, while the industry should now take a close look at its own arrangements."
Publishing trade body the PPA welcomed the OFT's defense of newspaper regulations, but it told the Guardian that certain magazines such as TV listings are also comparatively time-sensitive.
(c) 2008 Adfero Ltd.
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