January 19, 2022

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Justice Dept. Sues Penguin Random Home Over Simon & Schuster Deal

Justice Dept. Sues Penguin Random House Over Simon & Schuster Deal

In certainly one of its first main antitrust selections, the Biden administration is suing to cease Penguin Random Home, the biggest writer in the US, from acquiring its rival Simon & Schuster, signaling a broader view of checking company consolidation than the one which has prevailed in Washington for many years.

In a publishing panorama dominated by a handful of mega corporations, Penguin Random Home towers over the others. It operates greater than 300 imprints worldwide and has 15,000 new releases a yr, excess of the opposite 4 main U.S. publishers. With its $2.2 billion proposed acquisition of Simon & Schuster, Penguin Random Home stood to grow to be considerably bigger.

The deal was challenged amid a shifting environment in Washington towards consolidation, the place there was elevated scrutiny on competitors and the ability wielded by massive corporations like Amazon and Fb. The transfer offers a window into how the Biden administration will deal with these considerations going ahead.

Fairly than considerations solely over hurt to customers, the Division of Justice mentioned the acquisition could possibly be detrimental to producers — on this case, authors — in what is known as a monopsony, versus a monopoly. The Biden administration filed its case towards Penguin Random Home in the US District Court docket for the District of Columbia on Tuesday.

Penguin Random Home mentioned it deliberate to vigorously combat the problem and employed Daniel Petrocelli as its trial lawyer. Mr. Petrocelli efficiently defended AT&T and Time Warner towards the Justice Division when it tried to dam their $100 billion merger.

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