09 March 2007

Office of Fair Trading

http://www.oft.gov.uk/default.htm

Supply of Newspapers Referred to Competition Commission

OFT asked to consider referring the market for the supply of newspapers and magazines to the Competition Commission

The OFT has received a request from the National Federation of Retail Newsagents (NFRN) to consider whether to refer the market for the supply of newspapers and magazines in the UK to the Competition Commission (CC) for a market investigation.

Under the Enterprise Act, the OFT may make a reference to the CC if it has reasonable grounds for suspecting that there are features of a market that prevent, restrict or distort competition. The OFT is considering the NFRN's request in the light of its guidance as to when references to the CC will be made.

This request has to be addressed in addition to the OFT's current work on the draft Opinion and the review of the Code of Practice. While these fall to be examined under separate and distinct legal frameworks, the OFT recognises the close links between these three pieces of work. The need to examine the NFRN's request properly, in tandem with the existing processes, will impact on the timing of the Code review and the Opinion.

While the OFT is aware of the need for expediency, it is essential to ensure consistency between these pieces of work.

Industry has asked the OFT for an indication of the sequencing of these three pieces of work. Once the Secretary of State has received the OFT's advice on the Code and made his final decision, the OFT will publish its advice and the final Opinion. Thereafter, and taking into account the conclusions reached in the Code review and Opinion, the OFT will publish for consultation its provisional position on whether or not to refer the market to the CC. Following this consultation, the final decision on whether to make a reference will be published.

NOTES
1. Section 131 of the Enterprise Act 2002 contains the OFT power to make market investigation references.

2. Market Investigation References: Guidance about the making of references under Part 4 of the Enterprise Act (March 2006). This can be found on the OFT website - http://www.oft.gov.uk.

3. See the OFT's press release number 94/06, 31 May 2006, Competition concerns about newspaper and magazine distribution agreements.

4. The legal framework for the NFRN request is the Enterprise Act 2002, in particular section 131 of this Act. For the review of the Code of Practice it is the Fair Trading Act 1973, the review being conducted under section 88(4) of this Act. With regard to the Opinion, the framework is the Competition Act 1998, following the request from a group of publishers, distributors and wholesalers for an industry-specific block exemption under that Act. The aim of the Opinion is to provide guidance to assist the parties to newspaper and magazine distribution agreements in self-assessing whether their agreements are likely to be compliant with the Chapter I prohibition of the Competition Act 1998.

http://www.oft.gov.uk

PUBLIC enquiries: 0845 7224499
enquiries@oft.gov.uk
OFT reports and consumer information leaflets are available free from:
OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 oft@ecgroup.uk.com

Jobs Now LEGAL DIRECTOR Sought for challenging in-house position with Myspace, the online space which has revolutionized the way people interact, as sole attorney in their London office More >> HEALTHCARE LAWYER With at least 5 years PQE sought by Capsticks, a leading healthcare practice, to drive forward the development of their Birmigham based office More >> PI PARALEGAL Required by Plexus Law, a specialist PI firm, to provide in-house support to the Motor Claims Department in their Folkstone offices More >> NETWORK ENGINEER Sought by Personnel 2000 for their client, an international banking insurance provider, based in the Cayman Islands More >> LEGAL SECRETARY Required by Law Choice for their client, a prestigious US law firm, to work for 2 partners in their Dubai offices More >>

Legalday Related Pages

Contact

Fleetbank House
2-6 Salisbury Square
London, EC4Y 8JX
enquiries@oft.gsi.gov.uk
http://www.oft.gov.uk/default.htm

More Commentaries From
Office of Fair Trading

OFT Raids Companies Suspected of Marine Hose Cartel
04 May 2007

OFT to Study Free Banking
26 April 2007

OFT Refers Tesco Bid for Slough Co-Op to CC
20 April 2007

More Commentaries from
Office of Fair Trading

Author/Firm Profile
Office of Fair Trading