The Department of Justice $ 2.2 Billion Book Publishing Agreement It would have reshaped the industry and said that integration would hurt the author, and ultimately the reader.
German media giant Bertelsmann’s Penguin Random House is already the largest publisher in the United States and I want to buy Simon & Schuster based in Newyork. Its authors include Stephen King, Hillary Clinton, and John Irving of television and film company ViacomCBS.
The Department of Justice filed an antitrust proceeding in the US District Court in the District of Columbia on Tuesday in the first major antitrust proceedings by the Biden administration. How many authors will be paid for the state and their work? “
“If the world’s largest book publisher is allowed to buy one of its biggest rivals, it will dominate this important industry in an unprecedented way. American writers and consumers Will pay the price of this anti-competitive merger-less progress for writers, less books in the end, less diversity for consumers, “Attorney General Merrick Garland said in a statement. ..
Purchasing Simon & Schuster dominates American publishing and reduces the so-called Big Five, including HarperCollins, Hachette Book Group, and Macmillan, to four.
The deal has expressed concern from writers and rival publishers. The authors guild, the Authors Guild, said it opposes the acquisition as there is less competition for authors’ manuscripts. Rupert Murdoch’s News Corporation, which owns HarperCollins and is reportedly interested in acquiring Simon & Schuster, has accused the deal. CEO Robert Thomson said Bertelsmann “was buying market power as a huge book” last fall.
In a statement, the publisher said that fighting the proceedings and blocking the deal would hurt the author. “The DOJ proceedings are wrong in facts, law, and public policy,” said Penguin Random House lawyer Daniel Petrocelli. “Importantly, the DOJ has not found or claimed that this combination reduces competition in the sale of books.”
Petrocelli, Vice Chairman of O’Melveny & Meyers, is a prominent lawyer who defended AT & T against the Department of Justice. Attempts to block Time Warner purchases have failed Under the Trump administration.
The two companies have stated that publishers will continue to compete with each other for books after the deal is signed, and Penguin Random House has no plans to reduce the number of books acquired or the amount paid for book transactions.
The Penguin Random House’s proposed acquisition of Simon & Schuster follows decades of integration in the publishing industry. The Penguins and Random House itself merged in 2013, less than a decade ago. Acquisitions have intensified in recent years as publishers seek a stronger bargaining position with the country’s largest bookstore. Amazon.com..
Mary Resenberger, CEO of the Authors Guild, said: In a statement on Tuesday.
President Joe Biden Seeking Greater scrutiny of the merger as part of his efforts to intensify competition and thwart corporate strength. He countered monopoly rights by appointing Big Tech critic Lina Khan as chairman of the Federal Trade Commission and appointing antitrust lawyer Jonathan Kanter as head of the Antitrust Division of the Department of Justice. We have formed a team of regulators and advisors to try.
In that complaint, the Justice Department claims that if Penguin Random House buys Simon & Schuster, it will dominate nearly half of the market for the expected best-selling books. The government argues that this will lead to less profitable progress for writers, as the two companies will no longer compete with each other for the right to publish books. According to the government, lower salaries for authors make it harder for writers to write and make a living, eventually publishing fewer books and publishing fewer books for their readers. increase.
The Associated Press national writer Hillel Italie and business writer Marcy Gordon contributed to this report.
Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US file antitrust proceedings to suspend merger of major book publishers |
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