An imminent ruling from the OFT will bring the current arrangement, which involves three wholesalers exclusively distributing both newspapers and magazines, to an end. In return, the wholesalers promise universal distribution.
The OFT will split this, allowing newspapers to continue with the current arrangement, while opening up magazine distribution to competition. The magazine industry fears this will result in up to 1,000 titles and 12,000 retailers closing.
A cross-industry group met with the OFT last Thursday (25 August) at a meeting chaired by Haymarket Publishing chairman Lord Heseltine (pictured). But Dr Alan Kemp, chairman of the PPA Parliamentary and Regulatory Affairs Committee, said there were "no signs" of the OFT taking into account the magazine industry's concerns.
"[We've] been most discouraged by various statements made by the OFT to the effect that the industry is 'sloganeering' and 'scaremongering'," he said.
Story by Lauretta Roberts
Mag sector discouraged by OFT talks
A cross-industry group of publishers, wholesalers and retailers was left feeling discouraged following a meeting with the Office of Fair Trading (OFT) last week about the future legality of magazine distribution arrangements.
