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Competition Commission outlines key inquiry issues

The Competition Commission has outlined a number of issues that it plans to investigate during an inquiry into Archant’s acquisition of 27 London newspapers.

The group bought all the weekly titles run by Independent News and Media in Greater London, Essex and Kent late last year in two separate deals worth a total of £62m.

But after questions were raised by the Office of Fair Trading, the Competition Commission must decide if the deal has resulted in a near monopoly in some areas, and is currently gathering information, views and evidence before a hearing is held.

As part of its inquiry the commission will define a relevant market or markets and assess the competitive effects of the merger.

It will also compare future effects with what would have been likely to have occurred if the merger not taken place, and consider any customer benefits that might arise from the merger.

If it is found that there is, or may be expected to be, a substanial lessening of competition, the Commission will decide whether any remedial action needs to be taken and, if so, will issue a remedies statement.

Any interested parties wishing to comment on the acquisition have until June 15 to contact the Commission, which must then publish its report by October 13.

  • This is the first newspaper sale to be referred to the Competition Commission since the implementation of the Communications Act 2003 gave the OFT jurisdiction over relevant newspaper mergers, and follows last year’s referral to the commission by the Secretary of State for Trade and Industry on the proposed transfer of the same titles to Newsquest.

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