From The Hindu, November 27, 1974: U.S., U.K. Book Publishers ‘Suppress Competition’

WASHINGTON, Nov. 26

The U.S. Government has sued 21 major American publishers, accusing them of dividing up world book markers in a conspiracy with British publishers. The British Publishers Association, consisting of nearly all major publishers in the United Kingdom, was named as a co-conspirator but not as a defendant. The suit alleged that the U.S. defendants — including such publishing giants as McGraw-Hill, Macmillan Inc, Harper and Row, Crosset and Dunlap and Random House — had for 30 years worked out exclusive marketing territories throughout the world, eliminating U.S.-British competition in these countries.

When the same book was to be published in both countries, the American houses granted licences to British publishers, giving them exclusive rights for publication, distribution and sales in some 70 countries now or formerly members of the Commonwealth.

The British publishers reciprocated by agreeing not to publish the book in the U.S. and certain other countries, particularly Canada and the Philippines, the suit alleged.

The Justice Department charged that the method of slicing up markets to suppress competition among publishers deprived book buyers of the benefits that might flow from such competition. The suit urged the court to issue an injunction barring the defendants and alleged co-conspirators perpetually from restraining competition between American and British publishers. No damages were sought.

The U.S. exports books worth $250 millions (Rs. 200 crores) each year and imports books worth $140 million (Rs. 112 crores). The United Kingdom exports more than $165 millions (Rs. 132 crores) worth of books, the suit said.—Reuter.