Government consults on OFT advice to revoke undertakings on newspaper supply
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Released 22 Oct 2008
The Secretary of State for Business, Lord Mandelson, has today received
advice from the Office of Fair Trading (OFT) on the continued appropriateness of
statutory undertakings that underpin arrangements for the supply of newspapers
in England and Wales.
Having reviewed the undertakings, provided by newspaper wholesalers in 1994,
the OFT has concluded these are no longer appropriate and should be revoked.
Lord Mandelson has today invited interested parties to make written
representations to him on the OFT's advice. He will take these representations
into account before making a final decision on the future of the undertakings.
The consultation will run for 12 weeks with representations required by
Wednesday 14 January 2009.
1. Following the Monopoly and Mergers Commission's 1993 market investigation
into the supply of newspapers in England and Wales, industry parties adopted a
code of practice prescribing how newspaper wholesalers must operate in relation
to retailers located within their exclusive distribution territories. This
Newspaper Code is given legal force through statutory undertakings given to the
Secretary of State under the Fair Trading Act 1973 by the 78 wholesalers then
operating in the market. The undertakings confer a legal obligation on the
relevant wholesalers to comply with the Newspaper Code.
2. The undertakings have been periodically reviewed by the OFT who must
advise the Secretary of State whether they remain appropriate or whether they
should be varied, superseded or revoked. The OFT's advice to the Secretary of
State follows its latest review on the continued appropriateness of the
undertakings. The advice can be found on the BERR website at http://www.berr.gov.uk/whatwedo/businesslaw/competition/law/news_dis/inde
x.html as well as on the OFT's website.
3. Written representations to the Secretary of State about the OFT's advice
should be sent to Paul Bannister, Consumer & Competition Policy Directorate at
the Department for Business, 1 Victoria Street, London, SW1H 0ET
About the Author
© Crown Copyright. Material taken from the BERR- Department
for Business, Enterprise and Regulatory Reform replacing DTI - Department for
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Article Published/Sorted/Amended on Scopulus 2008-10-22 13:37:17 in Business Articles