ACCC knocks back PMP and McPherson's

Competition cop throws the book at the proposed multi-million merger between the two largest book printers in the region.

Finding that under the terms of the agreement publishers would have significantly less choice about where and how to print books in Australia, especially long-run titles, Graeme Samuel, chairman of the ACCC singled out the trade - fiction and non-fiction or read-for-pleasure - segment of the market.

"Griffin and McPherson's currently service the bulk of the domestic mono print requirements of Australia's medium and large trade publishers. They are the only two printers in the Australian market capable of competing across the full range of services required by publishers."

Griffin, which is PMP's South Australian-based book printer and Victorian-based McPherson's currently service the bulk of the domestic mono print requirements of Australia's medium and large trade publishers. They are the only two printers in the Australian market capable of competing across the full range of services required by publishers, according to Samuel.

"Industry participants noted that Griffin and McPherson's currently compete vigorously to supply mono book printing services to publishers," he said. "A significant number of publishers expressed concerns about the impact of the proposed joint venture on the terms and conditions under which they would be able to source their printing requirements."

Dismissing PMP and McPherson's claims that some books are sent offshore to be printed, the ACCC noted that there are still a significant number of books which must be printed in Australia due to time constraints and that combining the two companies could lead to price increases.

"The reduction in competitive tension in the market through the proposed joint venture will likely lead to higher book printing prices - or lower service conditions - for publishers, and, ultimately consumers," Samuel said.

"The ACCC took into consideration information provided by PMP, McPherson's and many other market participants, including customers and competitors."
Source: print21online