Competition watchdog to investigate planned sci-fi publisher takeover

The choice of reading material on offer to fans of science fiction could be unduly restricted by a merger between two publishers, competition regulators have said.

The Competition and Markets Authority is launching an “in-depth investigation” into the planned takeover of Imagine Publishing, which produces SciFiNow, by SFX publisher Future.

The CMA said the magazines were the major titles in their subject matter, meaning that a merger could “lead to higher prices or a reduction in choice and quality for readers”.

Sheldon Mills, the CMA’s senior director of mergers, cast doubt on the two companies’ argument that the magazines are facing plenty of competition from online titles.

“We found some evidence in this case that readers and advertisers consider online content to be a good alternative to print magazines, but not in all areas,” he said.

“In sci-fi, the evidence pointed towards print magazines serving a distinct need for readers and so, unless this aspect of the merger is changed, the merger may increase the incentive to raise the price or reduce the quality of those magazine titles – particularly to the detriment of the readers.”

When the competition watchdog rules that a merger could significantly reduce competition, it often asks for the companies involved to make concessions to secure a deal.

This can result in one or both of them being told to sell assets if they want the tie-up to go ahead. The CMA only objected to the impact on the sci-fi sphere, but not to overlap in other areas.