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Newspapers

Answer

Competition issues associated with newspaper distribution arrangements have been the subject of extensive public consultation in recent years.Between June 2003 and early 2004, the Government consulted on proposals concerning the treatment of exclusions and exemptions from competition law—including vertical agreements such as those relating to newspaper and magazine distribution. A copy of the consultation document may be found on the DTI website at www.dti.gov.uk/ccp/consultpdf/modconsult1.pdf Section 4 of that consultation document dealt with vertical agreements and the question of whether the order made in 2000 excluding vertical agreements from prohibition under UK competition law should be repealed. Parties from the newspaper and magazine supply chain were among those that submitted views to the consultation. The Government's response may be found on the DTI website at www.dti.gov.uk/ccp/consultpdf/compmodresp.pdf (section 7).In 2004, following repeal of the domestic exclusion for vertical agreements, a number of industry parties sought advice from the Office of Fair Trading (OFT) on the continued compatibility with competition law of agreements relating to the distribution of newspapers and magazines and requested the OFT recommend a new block exemption to cover such agreements. The OFT received representations from across the newspaper and magazine supply chain about the operation of the market. A number of the parties that made representations to the OFT wrote separately to DTI Ministers expressing their views. The OFT published its preliminary opinion on the matter in May 2005 for consultation. A copy can be found on the OFT website at www.oft.gov.uk/NR/rdonlyres/F7299676-BAAC-439B-A5A7-2A7AB3191B50/0/oft450.pdf The OFT received a number of further representations which it has since been considering. Again, a number of the parties that made representations to the OFT have written separately to DTI Ministers expressing their views. Ministers have also received letters on the matter from a number of hon. Members writing on behalf of constituents and from a small number of private individuals.I understand the OFT intends to outline the next steps in this case in the near future.

Secondary information

Type

Written question

Reference

54466; 443 c744-5W;443 c744-5W

Session

2005-06

Subjects

Competition Distribution Newspaper press Office of Fair Trading Distributive trade Wholesale trade

Link

View this Written question on www.publications.parliament.uk