Amazon Can Continue Acquisition of The Book Depository

Oct 26, 2011

The U.K's Office of Fair Trade (OFT) cleared Amazon to continue its acquisition of The Book Depository International Ltd. An online retailer of books in U.K. and international markets, The Book Depository makes sales through its own website as well as Amazon Marketplace. Amazon moved to acquire The Book Depository in July, but came under fire for dominating the U.K.'s online book trade. According to paidContent, the OFT launched an inquiry into the proposed acquisition.

Amazon was estimated to account for 70% of online book sales in the U.K., but The Book Depository was reportedly one of its biggest U.K. competitors, also celebrated for its "free shipping worldwide" policy. The OFT investigation found that the acquisition would not likely result in a substantial lessening of competition in the U.K., as The Book Depository accounted for only between 2% and 4% of online book sales. Competition within Amazon Marketplace was also determined to be unaffected by the merger.