Amazon could have faced stiff opposition to its plans to obtain British online bookseller The Book Depository, but a type of not standing in its path is the Office of Fair Trading. Over protests from the united kingdom Booksellers Association, Publishers Association and Independent Publishers Guild, the OFT approved the acquisition, saying that the purchase doesn’t form a de facto monopoly. While Amazon’s market share is “strong” its newest purchase only holds between two- and 4-percent — hardly making it a competitor of the web giant. The Book Depository will continue to function as an independent entity for the foreseeable future, but our friends around the pond now have one less option in the event that they choose to not do business with Bezos.
Despite industry organizations’ fears that Amazon’s acquisition of UK online bookseller The Book Depository will create a de facto monopoly, the Office of Fair Trading is approving the merger. Within the OFT’s view, The Book Depository is so small that Amazon (NSDQ: AMZN) is simply not buying a true competitor.
The OFT found that “Amazon’s share of the united kingdom online book market was strong,” but TBD’s accounted for less than “between two and 4 percent of online retailing” of hardcover books inside the UK. The OFT also said that the majority of TBD’s growth was happening in overseas markets, not inside the UK.
Amazon announced its acquisition of The Book Depository in July. The merger was opposed by the united kingdom Booksellers Association, Publishers Association and Independent Publishers Guild.
The Book Depository has said it should continue to function independently after its acquisition. It’s unclear when the merger can be completed.
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