Amazon may have faced stiff opposition to its plans to acquire British online bookseller The Book Depository, but one of those not standing in its path is the Office of Fair Trading. Over protests from the UK Booksellers Association, Publishers Association and Independent Publishers Guild, the OFT approved the purchase, saying that the acquisition would not form a de facto monopoly. While Amazon's market share is "strong" its newest purchase only holds between two- and four-percent -- hardly making it a competitor of the internet giant. The Book Depository will continue to operate as an independent entity for the foreseeable future, but our friends across the pond now have one less option if they choose not to do business with Bezos.
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Amazon's Acquisition Of The Book Depository Gets Official OK
Despite industry organizations' fears that Amazon's acquisition of UK online bookseller The Book Depository will create a de facto monopoly, the Office of Fair Trading is approving the merger. In the OFT's view, The Book Depository is so small that Amazon (NSDQ: AMZN) is not buying a real competitor.
The OFT found that "Amazon's share of the UK online book market was strong," but TBD's accounted for only "between two and four percent of online retailing" of hardcover books in the UK. The OFT also said that most of TBD's growth was taking place in overseas markets, not in the UK.
Amazon announced its acquisition of The Book Depository in July. The merger was opposed by the UK Booksellers Association, Publishers Association and Independent Publishers Guild.
The Book Depository has said it will continue to operate independently after its acquisition. It's unclear when the merger will be completed.