U.S. files antitrust suit to stop major book publisher merger

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U.S. regulators sue to block a $2.2-billion book publishing deal that would reshape the industry, saying consolidation would hurt authors and readers.

German media giant Bertelsmann’s Penguin Random House, already the largest American publisher, wants to buy New York-based Simon & Schuster — which has authors who include Stephen King,The Department of Justice filed an antitrust suit Tuesday in U.S. District Court for the District of Columbia, saying the deal would let Penguin Random House “exert outsized influence over which books are published in the United States and how much authors are paid for their work.

The filing offered three examples of situations where competitive bidding between the two publishing houses resulted in advances that were larger by six-figure amounts. The purchase of Simon & Schuster would reduce the so-called Big Five of American publishing — which also includes HarperCollins, Hachette Book Group and Macmillan — to four.

 

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