The U.S. Department of Justice (DOJ) is filing an antitrust lawsuit to stop the merger of major publishers Penguin Random House and Simon & Schuster. The attempt to block further publishing consolidation has received a great deal of support from industry insiders.
The DOJ's complaint primarily focuses on the sheer consolidation that would occur. The department's report notes that the merger would give the resulting firm control of nearly half of the publishing market. According to the complaint, this would provide the firm a considerable amount of control over the rates authors are paid and significant leverage in bidding for "anticipated top-selling books."
"We are heartened by the DOJ complaint's strong and consistent focus on authors and its understanding of the fact that authors inevitably lose income when there is limited competition for their works," The Authors Guild wrote in a statement. "The complaint demonstrates an understanding of how authors earn money in the traditional publishing industry and the importance of advances in providing authors with the necessary time and resources to develop quality books."
Others have voiced a similar opinion. Speaking to Vanity Fair, an editor noted, "I don't know anyone who would think this is a great thing to happen. It's hard to make the case that it's a good thing for the industry." Horror and supernatural writer Stephen King told the Wall Street Journal that he was similarly "delighted" by the suit.
The Biden administration's suit isn't shocking given the growing antitrust sentiment at all levels of the American government. The regulatory "wave," as it were, began with big tech, with efforts such as a multi-state anti-competition lawsuit and the DOJ's coming suit against PRH/S&S becoming much more common. The growing attitude of stricter regulation against major corporations has become a worldwide phenomenon, with governments from the U.S. to South Korea becoming bolder in antitrust actions.