A US court has blocked the sale of the US publisher Simon und Schuster to the Bertelsmann subsidiary Penguin Random House. The $2.2 billion deal could significantly restrict competition, said Judge Florence Pan of the US District Court in the District of Columbia. “The proposed merger would have reduced competition, reduced author compensation, reduced the breadth, depth and diversity of our stories and ideas, and ultimately impoverished our democracy,” said Deputy Attorney General Jonathan Kanter. When filing the lawsuit, the US government argued that the deal would lead to less competition and fewer advance payments for authors. Penguin Random House described the decision as “unfortunate” and announced that it would “immediately apply for an expedited appeal process”.
Book publishers – defeat for Bertelsmann – economy
