Watchdog 'concerns' over journals market hits Reed
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Competition may not be working effectively in the market for scientific, technical and medical journals, the Office of Fair Trading said yesterday in a report that hit shares in the sector leader Reed Elsevier.
After an investigation lasting more than a year, the OFT highlighted a series of "concerns" about commercial companies in the STM publishing market. Universities and learned societies also publish such journals.
Reed was the biggest faller in the FTSE 100, dropping 5 per cent to 547.5p. The company has around 18 per cent of the worldwide market in SMT journals. Taylor & Francis, which has around 2 per cent of the market, saw its shares close down 24p to 510p.
John Vickers, director general of fair trading, said: "Journals are the principal means by which scientific knowledge is disseminated. The market, which operates worldwide, has a number of features that suggest that competition may not be working effectively."
For years academics have complained that their shrinking budgets mean they are finding it more difficult to keep subscribing to journals.
The OFT said the cost of journals had increased ahead of inflation and there was substantial price disparity between commercial and non-commercial journals. It found high levels of profitability for commercial STM publishing.
However, the watchdog did not propose immediate action and said there were some possible ways that emerging market forces may address the problems. This includes signs of price restraint by commercial publishers and increased buyer power from the internet.
Reed indicated that it was relaxed about the findings. A company spokesman said: "We are pleased that the OFT has concluded that the market for STM journals does not warrant further investigation."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments