Decision Nº M/04/048 from Competition and Consumer Protection Commission, 2004-09-13

• Jurisdiction: Ireland
• Parties: Hachette Livre,Hodder Headline
• Date: 13 September 2004
• Decision Date: 13 September 2004
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/04/048

Determination of the Competition Authority

Determination No. M/04/048 of the Competition Authority, dated 13

September 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/048 – The proposed acquisition by Hachette Livre

SA of Hodder Headline Limited

Introduction

1. On 13 August 2004 the Competition Authority, in accordance with Section 18

(1) of the Competition Act, 2002 (“the Act”) was notified, on a mandatory

basis, of a proposal whereby Hachette Livre SA (“Hachette”) would acquire all

of the shares in Hodder Headline Limited (“Hodder”) (“the proposed

acquisition”).

2. The proposed acquisition is international and was also notified to the UK

Office of Fair Trading and to the Bundeskartellamt in Germany.

The Parties

3. Hachette is a French company that publishes educational, reference, general

cultural and leisure books in France, Spain and the UK. Hachette is part of

the Lagardère group of companies, which operates in two main industries:

communications/media/publishing, high technology (including

defence/aerospace). Hachette has no physical presence in the State, but does

export books into the State from the UK.

4. Hodder, a subsidiary of the UK retail company WH Smith PLC, is active in

book publishing in the UK, Ireland, New Zealand and Australia. Through its

Irish branch office, Hodder publishes a small amount of Irish non-fiction and

fiction, and popular and literary books, in the State. Hodder also makes direct

sales into the State from the UK.

Analysis

5. The parties to the proposed acquisition overlap in the Irish industry for the

wholesale supply of books to retail outlets. The parties estimate that, post-

acquisition, Hachette would hold the following sector shares: [10-20]% of the

sector for the wholesale supply of general literature (hardback); [10-20]% of

the sector for the wholesale supply of general literature (paperback); [0-

10]% of the sector for the wholesale supply of children’s books; [0-10]% of

the sector for the wholesale supply of scientific/medical/technical books; and

[0-10]% of the sector for the wholesale supply of academic and professional

publications.

6. The parties also provided information indicating that several large

competitors hold substantial shares in each of the above sectors. All share

estimates provided were derived from Nielsen Bookscan data.

7. The proposed acquisition would not result in the creation of market power

because concentration would not be substantially increased in any market as

may be defined. Hachette would hold no more than approximately [0-20]%

of any of the above sectors, post-acquisition, whilst a sufficient number of

large competitors would remain therein.

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