OFT Reprimands Exclusive Deals By Regional Publisher

Regional newspaper publisher, Community Media, has agreed to stop its exclusivity deals with advertisers after it was reprimanded by the Office of Fair Trading (OFT) this week. This could be the last time a media owner gets off so lightly with anti-competitive behaviour; new legislation will impose huge penalties on publishers that offer discounts to advertisers to prevent them from advertising elsewhere.

The regional paper group had given discounts to advertisers in the Weston-Super-Mare Admag and the Weston & Somerset Mercury. When new competition legislation comes into effect on 1 March 2000, penalties will be imposed for such behaviour. Up to 10% of UK turnover for each year of the infringement, for a maximum of three years, will be levied on companies that act in an anti-competitive manner.

Director general of the OFT, John Bridgeman, explained the reason for the change in legislation: “Healthy competition in newspapers is very important. Discounts in return for exclusivity can have adverse effects on competition, particularly if they are offered by media owners with significant stakes in the relevant market. Smaller newspapers are likely to find it very difficult to compete if they are denied advertising revenue.”

Office of Fair Trading: 0171 211 8000