§ Mr. PageTo ask the Chancellor of the Duchy of Lancaster when the report of the Monopolies and Mergers Commission on the supply of advertising services in specialised magazines for campers, climbers and walkers is to be published; and if he will make a statement.
§ Mr. MaudeThe report is published today.
The commission found that a complex monopoly existed in favour of Holmes McDougall Ltd, High Magazine Ltd, Rambler Ltd. and Mountain Magazine Ltd. which are publishers of magazines intended for campers, climbers and walkers. These companies followed a policy of refusing to accept advertisement containing information about the price of the goods advertised in their magazines.
The commission concluded that the operation of this policy by the publishers restricted or distorted competition and amounted to an action by each of them which operates against the public interest. The commission found that the operation of the policy had three particular adverse effects. First, it has hindered or prevented readers of the magazines from making an informed choice of goods arid supplier according to the balance of their individual priorities between personal service and lower prices.
Secondly, it has restricted competition in prices between specialist retailers and the mail order companies which sell at lower prices. Finally, it has narrowed the range of prices at which particular goods are offered, arid it has increased the average price level.
The commission has recommended that the Secretary of State should make an order which would declare it unlawful for publishers of specialist magazines intended for campers, climbers and walkers to operate the policy of refusing to accept advertisements containing price information.
I accept the findings of this report and the commission's recommendation that an order should be made under the Fair Trading Act to remedy the detriments to the public interest. I am consequently arranging for the publication shortly of a notice setting out the terms of the proposed order and inviting interested persons who wish to make representations to do so.