OFT Opinion on Newspaper Magazine Distribution Brings Retailer Choice a Step Closer
01 Jun 2006
The Association of News Retailing (ANR), the news and magazines arm of the Association of Convenience Stores (ACS) has welcomed the Office of Fair Trading’s publication of an opinion of the status of current supply arrangements within UK and EU competition law.
The opinion, which is open for consultation until 1 September, gives little credence for arguments in favour of the current closed supply chain for newspapers and magazines, instead suggesting a number of benefits arising from a retailer-driven supply chain.
Explaining the purpose of the OFT’s opinion, ANR Managing Director John Lennon said: “For too long have publishers and wholesalers expected retailers to pay for the lack of flexibility, inefficiencies and high costs of the current supply chain. This Opinion could well open the door to what ANR has consistently asked for, a more flexible, innovative and cost effective retailer lead supply chain.
“ANR believe that the newspaper and magazine supply chain should be competitive, and that retailers should have choice of supplier. We therefore argue that this industry should be subject to competition law in exactly the same way as other industries.
“The OFT’s draft opinion does not give encouragement to those who believe that the existing supply chain is efficient. Furthermore, the OFT is clearly not persuaded that the existing monopoly supply is necessary in order to ensure universal supply of newspapers and magazines.
“This draft opinion is a step forward for those who wish to see retailer choice in newspaper and magazine supply. We will continue to pursue this objective, as we have consistently for a number of years, in our response to the draft opinion and in our ongoing work on behalf of all of our members.”
The opinion, which is open for consultation until 1 September, gives little credence for arguments in favour of the current closed supply chain for newspapers and magazines, instead suggesting a number of benefits arising from a retailer-driven supply chain.
Explaining the purpose of the OFT’s opinion, ANR Managing Director John Lennon said: “For too long have publishers and wholesalers expected retailers to pay for the lack of flexibility, inefficiencies and high costs of the current supply chain. This Opinion could well open the door to what ANR has consistently asked for, a more flexible, innovative and cost effective retailer lead supply chain.
“ANR believe that the newspaper and magazine supply chain should be competitive, and that retailers should have choice of supplier. We therefore argue that this industry should be subject to competition law in exactly the same way as other industries.
“The OFT’s draft opinion does not give encouragement to those who believe that the existing supply chain is efficient. Furthermore, the OFT is clearly not persuaded that the existing monopoly supply is necessary in order to ensure universal supply of newspapers and magazines.
“This draft opinion is a step forward for those who wish to see retailer choice in newspaper and magazine supply. We will continue to pursue this objective, as we have consistently for a number of years, in our response to the draft opinion and in our ongoing work on behalf of all of our members.”