OFT to investigate agency pricing in the the UK

Newsflash from The Bookseller

The Office of Fair Trading has launched an investigation into agency pricing, following a "significant" number of complaints.

The model, which allows publishers to set their own prices for e-books rather than a retailer, was first implemented in the UK by Hachette in September, with HarperCollins and Penguin following suit in November. Simon & Schuster also made the switch at the end of the year.

The OFT investigation puts this strategy into doubt. But the OFT said: "The investigation is at an early stage and it should not be assumed that the parties involved have breached competition law."