Watchdog inquiry into pricing of Murdoch titles
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Your support makes all the difference.A business watchdog has launched an inquiry into allegations of predatory pricing at The Times and The Sunday Times, after complaints from other newspapers.
The Office of Fair Trading said last night it was investigating allegations that a subscription offer launched earlier this year by the national newspapers breached the 1998 Competition Act.
The OFT confirmed it had launched an official inquiry after examining a series of complaints against Rupert Murdoch's publishing empire. "There is a formal investigation into anti-competitive practices," a spokesman said. "This is triggered when we have reasonable ground to expect a breach. We did receive complaints."
The investigation is expected to focus on a subscription offered to readers earlier this year. About half a million households were offered the chance to subscribe to The Times and The Sunday Times for up to 48 weeks for £1 a week. This saved readers £2.90 a week on the normal cover price of the papers.
The complaints to the OFT centred on the cost of producing the papers and the scale of the offer. The watchdog is expected to examine allegations that the discounted cover price was far below the cost of producing a paper.
If the OFT rules that The Sunday Times has abused its dominant market position it faces fines of about 10 per cent of the turnover it has made since the offer began. News International, the British parent company of The Times and The Sunday Times, has said it will co- operate fully with the inquiry and provide information the watchdog requests.
"We've received a letter from the OFT requesting information regarding subscriptions on our broadsheet newspapers," a spokeswoman said. "We will comply with the investigation, as we have done in the past."
The inquiry could take at least a year and the OFT is planning to call witnesses to give evidence. It will make a preliminary decision after the first part of its inquiry is complete.
News International will then be informed of the initial findings and have a chance to present further evidence to the investigating team before a final decision is made.
This is the second time Mr Murdoch's media empire has been investigated by the OFT.
The watchdog is reaching the end of an 18-month investigation into the satellite broadcaster British Sky Broadcasting, which is 36 per cent owned by News International.
BSkyB has been accused of abusing its position in the UK pay television market, and has been warned by the watchdog that a guilty verdict is likely.
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