Penguin Random House-Simon & Schuster Merger “Must Be Stopped,” Justice Department Attorney Tells Judge As Antitrust Trial Of Publishing Giants Begins
deadline.comAttorneys for the Justice Department and Penguin Random House squared off on Monday in the first day of an antitrust trial, as the government challenges the publishing giant’s proposed $2.2 billion acquisition of Simon & Schuster. “This proposed merger must be stopped,” John Read, the Justice Department’s attorney, said in opening arguments, as he outlined a case that will rely heavily on testimony of rival CEOs, book agents and authors, including Stephen King.
The trial. at U.S. District Court in Washington, D.C., is being closely watched by authors and writers, as well as content creators generally, as the government’s case hinges on the premise that the merger will diminish advances for high profile titles, or anticipated best selling books.
King is expected to testify in the case this week, perhaps on Tuesday. The case is not just a test of the Biden administration’s effort to more strictly scrutinize proposed mergers, but to challenge them for their impact on labor and employees, not solely consumers.
The DOJ claims that the transaction will create a publishing behemoth that commands 49 percent of the market for best sellers.
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