EC announces German r.p.m. investigation
Eighteen months after Germany and the European Commission reached an agreement about retail price maintenance for books, the EC has reopened the debate about German r.p.m. with the announcement of a formal investigation.
The decision, taken by the European Union Competition Commissioner Mario Monti, has left the German book trade in a state of shock.
The trade association Börsenverein des Deutschen Buchhandels reacted angrily to the news, calling it discriminatory. Initial fears that all 1,700 German publishing companies would come under scrutiny were allayed after the EC in Brussels announced that it intended to concentrate its inquiries on the Verlagsgruppe Random House, the German trade publishing unit of Bertelsmann, leading wholesaler Koch, Neff & Oetinger and the Börsenverein itself.
The EC's investigation follows allegations that publishers and wholesalers colluded illegally by refusing to supply Internet booksellers outside Germany in a bid to prevent them from selling books back into the country at a discount. According to Brussels, this contravenes last year's agreement under which German publishers are only allowed to continue to set prices in their domestic market.
While publishers say that re-imported books are subject to fixed prices, Mr Monti insists that German r.p.m. does not apply to online booksellers from other EC countries.
However, the decision should not have come as a complete surprise. The move followed formal complaints by Austrian bookseller Libro and Belgian Internet bookseller Proxis, stating that they were effectively being boycotted by German publishers.
As a result, anti-trust regulators employed by the EC seized papers and documents from German publishers and wholesalers in a series of dawn raids last August.
The companies involved have three months to respond to EC objections, followed by a hearing. Should the EC decide to impose a fine the case is expected to go before the European Court of Justice.
The decision, taken by the European Union Competition Commissioner Mario Monti, has left the German book trade in a state of shock.
The trade association Börsenverein des Deutschen Buchhandels reacted angrily to the news, calling it discriminatory. Initial fears that all 1,700 German publishing companies would come under scrutiny were allayed after the EC in Brussels announced that it intended to concentrate its inquiries on the Verlagsgruppe Random House, the German trade publishing unit of Bertelsmann, leading wholesaler Koch, Neff & Oetinger and the Börsenverein itself.
The EC's investigation follows allegations that publishers and wholesalers colluded illegally by refusing to supply Internet booksellers outside Germany in a bid to prevent them from selling books back into the country at a discount. According to Brussels, this contravenes last year's agreement under which German publishers are only allowed to continue to set prices in their domestic market.
While publishers say that re-imported books are subject to fixed prices, Mr Monti insists that German r.p.m. does not apply to online booksellers from other EC countries.
However, the decision should not have come as a complete surprise. The move followed formal complaints by Austrian bookseller Libro and Belgian Internet bookseller Proxis, stating that they were effectively being boycotted by German publishers.
As a result, anti-trust regulators employed by the EC seized papers and documents from German publishers and wholesalers in a series of dawn raids last August.
The companies involved have three months to respond to EC objections, followed by a hearing. Should the EC decide to impose a fine the case is expected to go before the European Court of Justice.
In addition, make sure to read these articles:
- Deal on cross-border sales
- TEI European chapter meets in Brussels to...
- Germany and Austria end r.p.m. battle with EC
- Der Club backs down in discount row
- RH gets literary with Luchterhand
- Middelhoff leaves sale doubts
- German trade in tough year
- Ullstein future in balance
- Random UK outperforms global group
- Listening to the digital market
- Springer UHL rumour
- Tax planning
- German Publisher Karl Blessing Dead at 63
- UHL break-up goes ahead
In addition, make sure to read these articles:
- Deal on cross-border sales
- TEI European chapter meets in Brussels to discuss intangible property issues.
- Germany and Austria end r.p.m. battle with EC
- Der Club backs down in discount row
- RH gets literary with Luchterhand
- Middelhoff leaves sale doubts
- German trade in tough year
- Ullstein future in balance
- Random UK outperforms global group
- Listening to the digital market
- Springer UHL rumour
- Tax planning
- German Publisher Karl Blessing Dead at 63
- UHL break-up goes ahead
A deal struck between the European Commission and the German publishing industry means that Germany's fixed book price system will stay intact, but will exclude ......
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