BOOK PRICE-FIXING LEGISLATION
PRESS RELEASE
PRESS RELEASE
Book price-fixing hampers competition to the detriment of consumers
The Competition Authority has submitted a report to the Speakers of both Houses of Parliament regarding the price-fixing of books, incorporated with an amendment into the Government Bill enacting "New provisions on the publishing industry and publications" which was approved by the Chamber of Deputies on 7 February and sent on to the Senate.
The Authority - which had already expressed its opinion to the Minister for Cultural Heritage on 28 November 2000 - pointed out that the introduction of a system of fixed prices and the ban on the use of promotional policies (except in a few marginal cases) would lead to a general increase in the retail price of publications and would curb the dissemination of books among occasional readers and people who are more sensitive to book prices, particularly young people, and who make up almost one half of the Italian readership.
Such a measure was, at all events, not even necessary to protect the bookshops: under the present pricing system, the number of book retailers had increased by over 30% in a decade, demonstrating the strength of the traditional distribution channel, and that was despite the even higher growth rates recorded by the chain stores.
In the Bill approved by the Chamber of Deputies provision was made imposing a maximum discount of 5% on school textbooks. This practically eliminated price competition on a market which offered very marginal possibilities of choosing between different book offerings in terms of variety and customer assistance, because the purchase of a school textbook is not something over which the consumer makes and independent decision. Moreover, the resultant increase in book prices would have undesirable social repercussions, hitting with lower-income families hardest.
In the light of these considerations, the Authority expressed the hope that the fixed price system for books would not be introduced, and thereby prevent the introduction of measures that would hamper competition in the publishing industry to the detriment of consumers.
Rome, 13 February 2001