§ Mr. AdleyTo ask the Chancellor of the Duchy of Lancaster if he will set up an inquiry into the working of the net book agreement with a view to examining its effect on booksellers, publishers and book purchasers; and if he will make a statement.
§ Mr. Forth[holding answer 19 January 1989]: The Restrictive Practices Court has considered the net book agreement on two occasions and has found it not to be contrary to the public interest. Under the relevant legislation, the Director General of Fair Trading may apply to the court for a review of its decision if at any time he considers that there has been a material change in circumstances on which the original judgment was based. It is not open to Ministers to make such an application.
In the circumstances it would serve no useful purpose for the Government to set up an inquiry. However, the Government have proposed fundamental reforms to restrictive trade practices legislation under which, among other things, it is intended that arrangements such as the net book agreement which have been cleared under existing legislation should be reconsidered in due course by the appropriate competition authority under criteria laid down in the new legislation.