Magazine distribution changes on hold as ACCC investigates whether they are uncompetitive

Fletcher

The competition watchdog is looking into proposed changes to magazine supply models after newsagents claimed they still leave them at a competitive disadvantage against supermarkets.

A proposed pilot program to test changes to the distribution model has been put on hold while the Australian Competition Consumer Commission (ACCC) looks at whether the new rules maintain different standards between what newsagents are allowed to do and what supermarkets are permitted to do.

The planned changes are the first since the newspaper and magazine industry was deregulated in 1999, allowing supermarkets, petrol stations and convenience stores to sell newspapers and magazines. However, they are not bound by the same restrictions as newsagents when it comes to selecting which titles they sell and how much stock they get.