[LIS-Forum] KINDLY CIRCULATE - THANX

[Ragaavendra R]

Competition panel finds Springer guilty of unfair trade practices

The Competition Commission of India has found publisher - Springer India - guilty of abusing its dominant position in the market for academic journals.

While imposing a penalty of 5 per cent of the average turnover for the last three years, CCI warned Springer India against imposing unfair prices and sale conditions. It was also asked to lift the ban on experts from writing for other publications.

Academic publication
Acting on a complaint by Prints India, CCI said Springer India and other opposing parties - India Academy of Sciences; Indian Association for the Cultivation of Sciences; Indian National Science Academy; Operational Research Society of India; Department of Psychology (University of Delhi); Indian Statistical Institute; Association of Food Scientist and Technologist; IGCAR, Kalpakkam - had entered into anti-competitive agreements (co-publishing) thereby violating norms of fair trade practices.

Academic publication is a small, specialised part of the bigger market of books and magazine publications. Largely present in the field of science, technology and medicines, these journals are usually called STM by the publishing industry. Unlike books, these have to be sourced from publishers through subscription and cannot be bought from bookshops.

Print India had approached CCI in 2010 stating that Springer was imposing excessive pricing and unfair conditions in sale. Print India is engaged in the business of distribution and export of Indian journals for domestic and foreign clients.

During its probe, CCI found Springer had about 31 per cent market share in terms of the number of STM journals and 64 per cent in terms of circulation. It also found that 47 journals that Springer India had acquired rights for were 'must have' titles for researchers. This made its position in the STM segment dominant.

"Any library or institution or even individuals interested in research work being done in India cannot afford to ignore Springer's portfolio," CCI said, adding that its market position fortifies its dominant position.

Springer publishes around 2,000 journals and over 6,500 new books a year and is present in 20 countries.

CCI also found that Springer's portfolio of STM journals had co-publishing arrangements with 43 STM journals, in association with prominent scientific societies/institutes in India.

Springer India's turnover for 2010-11 stood at Rs 30.03 crore with net profit at Rs 9.85 crore (which includes Rs 4.04 crore royalty paid to parent company).

"The dominance in this case is acquired through the various agreements Springer had entered and not on the basis of its market share," CCI said.

SOURCE LINK: http://www.thehindubusinessline.com/companies/article3606654.ece


Best Regards,
Raghvendra R

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