Industry seeks new deal on book pricing

Date: 11/11/1999

By Renée Cordes

GERMAN and Austrian publishers are urging the European Commission to allow them to set up two separate national book pricing schemes to replace their controversial cross-border agreement.

The move comes amid cautious optimism in both countries that the industry will be able to allay the Commission's concerns about possible violations of the EU's Union's competition rules.

They are planning to write to Competition Commissioner Mario within a few days suggesting the introduction of a system under which publishers would be able to set prices at home.

The proposed regime is similar to that currently operating in France, which has been upheld by the European Court of Justice. This allows publishers to fix the prices of books sold on the domestic market but not in cases where books are exported and then reimported into France.

“This is the kind of scenario we are striving for,” said Eugen Emerling of the German book publishers' association.

Above all, he added, the industry was concerned that German books sold in Austria, which make up a massive 80&percent; of the Austrian market, should not be sold at higher retail prices than in Germany. Austrian publishers fear that in the absence of fixed prices in their own country, consumers would buy books in Germany or through Internet outlets such as Amazon.com's German site, to take advantage of cheaper rates.

Competition officials argue that the current fixed price system operated by German and Austrian publishers is illegal and insist it does not qualify for an exemption from Union rules which outlaw restrictive practices.

Monti has said he believes the system violates EU competition rules, but has offered to consider a compromise if the industry could persuade him that such schemes were an effective means of promoting culture with a minimum breach of anti-trust rules.