PRESS RELEASE

ICA’S INVESTIGATION ON THE MERGER MONDADORI–RCS LIBRI IN THE PUBLISHING MARKET

The Italian Competition Authority has launched an investigation to verify whether Mondadori’s acquisition of RCS Libri will entail the creation or strengthening of a dominant position in the Italian publishing market. According to the ICA’s opinion, this further consolidation of the sector intervenes in a market context particularly concentrated and vertically integrated. In fact, currently about 60% of the light non-fiction publishing market in Italy is represented by five main groups (Mondadori, RCS, GEMS, Feltrinelli and Giunti). Although in different measure, they are all characterized by a vertical integration in the entire publishing chain against a rather high number of non-integrated medium-small editors.

In this context, Mondadori and RCS Libri are the closest competitors. The two groups are the main publishing houses of light non-fiction books in Italy, ranking among the first five operators in the publishing market of this sector. Moreover, they hold particularly important positions in fiction and non-fiction markets as well as that of e-books.

The merger seems likely to produce prejudicial effects on the terms for supplying publishing products to readers. Besides, it could reduce authors’ possibility to choose, thus worsening their contractual terms.

On the basis of these conditions, the ICA’s investigation will verify in what measure the mentioned merger can establish or strengthen Mondadori on the following markets: the market for the acquisition of copyright licenses of Italian and foreign fiction and non-fiction books; the market for the publishing of fiction and non-fiction books; the market for the publishing of children’s books; the market for the publishing of comics; the market for the publishing and distribution of e-books. Moreover, the ICA’s investigation will take into consideration the effects of the merger on the end markets: the market for the distribution of light non-fiction books to large-scale retailers, the market for the retail sale of light non-fiction books and the market for the online retail sale of publishing products.

The investigation will be concluded within 45 days starting from 21 January 2016, plus an additional 30 days in order to acquire the opinion of the Communications Authority (AGCOM – Autorità Garante sulle Comunicazioni).

Rome, 22 January 2016