Report dismisses press 'monopoly' (From Milford Mercury)

Report dismisses press 'monopoly'

11:30am Thursday 4th February 2010

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A COUNTY Councillor whose family sold the Milford Mercury to the owners of the Western Telegraph is claiming that a monopoly exists among the local press in Pembrokeshire.

But the county council cabinet is set to reject the claims of Hakin member, Councillor Mike Stoddart.

In a notice of motion, Cllr Stoddart said: “This council makes known to the Competition Commission its concerns about Newsquest’s [the owner of the Western Telegraph and Milford Mercury] monopolistic pricing strategy for public notices.”

Cllr Stoddart claims the Western Telegraph is “using its monopoly pricing power to overcharge” the county council for public notices that it must advertise by law.

But the report points out that there are four local newspapers based within Pembrokeshire, of which Newsquest owns two. A further two newspapers circulate in the county.

While acknowledging that the Western Telegraph has a circulation higher than all of the other Pembrokeshire-based papers combined, the report adds “this does not mean that it operates a monopoly”.

The council calculated that placing public notices in each of the smaller Pembrokeshire newspapers would cost significantly more than it does in the Western Telegraph.

And placing the public notices in the Western Mail would more than double the cost.

The report adds: “If the Competition Commission had concerns about a potential monopoly in local newspapers in Pembrokeshire, it is likely to have investigated the matter at the time of the sale of the Milford Mercury to Newscom (the then owners of the Western Telegraph), which was subsequently acquired by Newsquest.”

The cabinet recommends rejecting the notice of motion stating: “There is no apparent monopoly operating among local newspapers and the council is already achieving best value.”

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