OFT Requests Pricing Information From News International

The Office of Fair Trading (OFT) has asked News International to provide detailed information about its two newspapers, The Times and Sunday Times, as part an investigation into alleged predatory pricing.

The Guardian, Independent and Daily Telegraph have all complained to the OFT that News International is acting anti-competitively by subsidising the prices of its papers using profits gained from other areas of its business (see OFT Seeks Information On Times Price Cuts). The OFT requested information from these groups to support their claims.

John Bridgeman, director general of Fair Trading, said: “We now have a detailed account of how the industry works from the complainants’ perspective. The next step is to ask News International for information on pricing strategies, profitability and the fixed and variable costs of producing The Times and Sunday Times.”

However, Bridgeman stressed that, “this does not mean that we have reached a conclusion about the complainants’ allegations.”

This is the fourth time that complaints against News International have forced such an enquiry. On previous occasions, in 1993, 1994 and 1996, no further action was taken.

News International must respond to the OFT within six weeks.

Office of Fair Trading: 211 8000 News International: 0171 782 6000