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Bookseller Group to oppose Amazon/TBD deal

19.07.11 | Bookseller Staff

The Bookseller has added its voice to calls for Amazon's acquisition of The Book Depository (TBD) to be referred to the Competition Commission.

The Office of Fair Trading's deadline for submissions about the merger ended at 5pm last night (18th July), and in its letter The Bookseller Group, publishers of The Bookseller, argues that if the merger goes ahead, Amazon could have an over-dominant share of the bookselling market which may ultimately affect customers' choice in books.

Nigel Roby, m.d of The Bookseller Group, said: "It is not that TBD's acquisition creates a sudden, new, anti-competitive position; it is rather that it is the straw that broke the camel's back. If Amazon is in a stronger position to demand better terms from publishers, this could also have a knock-on effect for independents and smaller chains if publishers seek to maintain revenues."

Estimates suggest Amazon may already have an overall 25% share of the total book sales market and its share of the mid-market may be higher. Roby said: "Publishers may consider reducing the number of mid-market books if Amazon's share of the market, and the terms it seeks, reduce their commercial viability. This scenario reduces choice to consumers, reduces the ability of authors to gain a reasonable livelihood, reduces the number of small to medium-sized publishers and puts unsustainable pressure on the High Street retailer."

Amazon has also moved into e-book publishing under its own imprints which, The Bookseller's letter notes, takes it into direct competition with publishers.

Roby added: "Over its 16-year history, Amazon has enabled a whole wealth of ‘long tail' titles to find new readers and it should be praised for that. But unchecked expansion in any market can lead to imbalance. Amazon's growth, diversification and its ability to control publishers' main route to market now merit serious examination."

The OFT decision following its investigation into the merger is currently expected to be finalised on 30th August 2011. The Bookseller Group joins the Publishers Association, Booksellers Association and Independent Publishers Guild in objecting to the deal.

 

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By Lee Searby

As an independent bookseller who has been forced out of the high street and now we sell at weekend events and online we often find that we are buying stock titles from Amazon and (TBD) simply because we can get better discounts from them than we get from the publishers if trade customers are purchasing from these retailers instead of through publishers normal distribution routes then why would the public buy from an independent book shop.

Tue, 19/07/2011 - 11:09
By Kevin Mahoney

As a small print-on-demand paperback and ebook publisher (Punked Books), I think that Amazon's purchase of the Book Depository would be very good for me, and so I wrote to the OFT yesterday to support Amazon's acquisition. The argument that this move will lead to less choice is baloney, as there are progressive independents like me who are more than willing to take on the more established trade publishers who have higher overheads, who price ebooks too high, and who are set in their ways. Besides, since Amazon came along, they've done nothing but increase choice; even more so in recent years with the launch of the Kindle and their self-publishing programmes.

Amazon's purchase of the Book Depository makes sense to me as Amazon.co.uk's actually quite poor on the 'long tail' end of the business (in comparison to Amazon.com and TBD). The Book Depository looks also to need a better ebook fulfillment system, which they could get from Amazon. And you only have to look at Amazon's purchase of Lovefilm to see how their acquisitions still retain their identity.

Tue, 19/07/2011 - 11:35
By FrankAA

C'mon Bookseller, Amazon and TBD have done nothing but increase consumer choice, value and customer experience. This is why they have done so well and captured market share. Isn't this about what is best for the consumer, not Fat Cat publishers who still make huge margins and operate out of HUGE shiny offices.

As for small - mid size publishers, Amazon opened up the door. Chains have stopped buying from them, and many would have been out of business already if Amazon wasn't about.

It is the trade publishers who are trying to fix prices through Agency Models and also reduce choice. You have totally lost your perspective, objectivity, INTEGRITY, and clearly do not understand the market. This is a sorry day for the book trade.

Tue, 19/07/2011 - 13:15
By Anon

So the Book Seller is suggesting to the OFT that the best way to protect consumer interests is by maintaining high margins for publishers? How bizarre.

Tue, 19/07/2011 - 13:43
By Clive Keeble

Amazon are not "welcome in my house" ; they have caused untold damage to the terrestial independent booktrade.

That much said, this takeover does not appear to raise competition issues, or endanger the future of successful publishers, their readers or their authors.

It is my considered opinion, that Amazon primarily wish to acquire the raw back-end code of TBD and its development partners in Egypt (elkotob.com) ; hence the takeover.

The Bookseller have sold themselves short by once again failing to do any proper research, they seldom look beyond a press release and apply any insight to their reporting.

Tue, 19/07/2011 - 15:33
By Old Bookseller

If I was still bookselling, I would welcome this news. This removes Amazon's only erstwhile competitor from the market, enabling them to reduce the levels of discounts offered to the public - a slight (very, perhaps) re-balancing of the discount culture bookshops are having to fight daily. Sooner or later, a publisher will have the guts to stand up to Amazon and say: no, we own the copyright on all our products and we won't give you these ridiculous discounts you demand. If it doesn't happen soon, however, it'll be simply too late.

Tue, 19/07/2011 - 17:18

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