Fixed book price agreement

The book price is a statutory or contractual prices for books and similar products. She writes the publishers (or the book importers ) prior to fix a unalterable price of each book and make known that all final vendor (such as bookstores ) is binding, must be exceeded so neither under - nor.

This intervention in the free market economy is mainly justified by the fact that the book as a cultural have an inherently privileged position and the book price to guarantee an offer diverse book and a blanket coverage by smaller bookstores.

A model for force today book pricing law was adopted in 1981 in France Loi Lang. 2013 were appropriate arrangements in eleven EU countries. In German-speaking countries Germany and Austria have a statutory book prices in Switzerland is the book price as in the UK and the USA free.

• 2.1 efficiency -reducing aspects of book price fixing
• 2.2 Efficiency -enhancing aspects of book price fixing

Existing regulations

Europe

In Europe Book Prize in Germany in 2008, France was (see Loi Lang), Greece, Italy, the Netherlands, Austria, Portugal and Spain were regulated by law and in Denmark, Norway and Hungary appropriate industry agreements. No book price fixing existed in Belgium, Estonia, Finland, Great Britain, Ireland, Iceland, Poland, Sweden, Switzerland, and the Czech Republic. In 2013 were in eleven European countries, regulations on book prices.

Germany

In Germany the book price (§ 5 book pricing law ) applies in bookstores for all laid in Germany Books ( including foreign language, provided they are mainly sold in Germany ) as well as sheet music and cartographic products. In addition, the book prices for true " products, reproduce or replace the books, sheet music or cartographic products and evaluating the overall circumstances as predominantly verlags or bookselling typical to see are well combined objects where one of those products is the main thing " (§ 2 BuchPrG ).

As long as it is not to second-hand goods or securities whose prices were officially lifted, this price must be maintained (§ 3 BuchPrG ). Import tracks from countries without book prices are subject, however, no price-fixing in Germany.

The book price law

The publishers are legally obliged under the fixed book price law to fix the price plus sales tax (Final ) for the edition of a book for sale to final consumers.

After a preliminary phase which may be sold cheaper by binding pre-orders before the official release date for the subscription price in the books, the book price is valid. Through a public statement - usually in the yellow pages of the Börsenblatt - a publisher can pick up the book prices after a period of 18 months for individual titles. The prices for recurring, for example annually in an updated edition, published books can be picked up at the publication of the new edition.

Excluded from the price-fixing are marked deficiencies copies with actual defects and cars ( already bound to the price sold ) books or Altauflagen that are longer than 18 months on the market and for which the publisher has removed the price fixing. So-called remainders are not subject only to fixed prices when the books actually damaged or soiled, marked defects copies. Book clubs that sell books only to members, are affected only limited by the fixing of book prices. They act as a licensee, and thus lay special editions (so-called book club editions ), which must have a significant difference in equipment and usually appear with approximately six -month delay to the original title. This can (which they provided it myself as a publisher with a price ) to offer their titles cheaper the book clubs. Nevertheless, this book club editions are also award- bound again.

Who is businesslike with books, is obliged to observe the fixed retail prices. Businesslike is after a judgment already, who sells books at an unconventional for private scope. Compliance with the book price monitor so-called resale price maintenance trustees (PB - trustee): Approximately 1,000 publishing firms Wiesbaden Lawyers Dieter Wall rock and Christian Russ, ensure compliance with the fixed prices. In practice, warnings are sent when the PB Trustee determine violations of law. For this, the PB- trustee shall be entitled due to them by § 9 para 2 No. 3 BuchPrG incumbent locus standi; therefore, they also complain even in court proceedings. If it is possible the person who sold the new books businesslike, not to prove that they do not (more) subject of book price fixing, a liability for injunctive relief, information, costs and damages threatens him.

With the introduction of the fixed book price law in Germany, the listener bill at universities was abolished, the students eligible for subsidized respect of the books of a professor.

History

Was introduced in the book prices in Germany in 1888, as the culmination and completion of the so-called " Kröner 's reform " under the leadership of the Head of the Booksellers Association of the German booksellers Adolf Kröner. The regulations on fixed retail prices in bookstores were first enshrined in the Statute and in the traffic order and the sale of the exchange club. In the German book price fixing so it was in the first decades of its existence is a purely simplistic legal regime. Sanctions for violations of the statutes were initiated and monitored by the Booksellers Association. Basically, could only be directed against those club members. But the whole industry was in fact affected by it due to the large influence of the Booksellers Association within the German Book Trade.

Only in 1927 was the introduction of a lapel system also added a contractual component. Book producers ( publishers) and bookseller committed therein by bilateral agreements to comply with the price control regulations.

The combination of, club and contractual arrangements was maintained until 1945. At the insistence of the Western Allies, the central component had to be abandoned thereafter. The Börsenverein lost so in West Germany, the right of supervision over the book price. After some difficulties, the West German book trade could but gain the fundamental justification for binding of books prices from the Allies. In 1958, the resale price maintenance in the Act against Restraints of Competition (GWB ) was formalized. According to § 15 GWB agreements were generally forbidden to limit the price of freedom. In § 16 GWB it was said, however: "§ 15 does not apply where ( ... ) is a publishing company purchasers of its publishing in legal or economic ties to agree on certain prices when reselling or impose their customers an equal commitment to resale to the ultimate consumer. "

Securing the book prices on reverse could thus be continued in the following time:

In the Soviet Occupation Zone (SBZ ) and the GDR the simplifying regulations fixing of book prices could initially be maintained after 1945. Mid-1950s, but this was completely removed here and replaced by a state control of prices. Starting in 1948 books prices were controlled by so-called price arrangements ( PAO), which govern not only compliance with the retail prices, but also the price fixing by the publishers exactly.

On 1 July 1990, it was introduced with the Economic and Monetary Union of Sammelrevers 1974 in the GDR.

A new challenge arose for the book price fixing by European integration. Since the European competition law prohibits restrictions on trade between Member States, had to be changed in the German-speaking world, the old rules. Already in 1993 were Austria, Switzerland and Germany in a joint, cross-border collective lapel. After the accession of Austria to the European Union as well as this agreement was attacked by the EU Competition Commission. In 1998, the formal method for checking the cross-border price fixing between Germany and Austria was initiated. After a long dispute, the principle of book price fixing by the EU was indeed still recognized in 2000, but had to change the legal basis: On 1 July 2000, the hitherto voluntary system of fixed prices ( " resale price maintenance lapel ") was regulated by law in Austria.

In 2000, the Monopolies Commission came to the conclusion that a deletion of book price fixing the cultural book is not hazardous. The demand was rejected by the then Federal Minister of Economics Müller.

On October 1, 2002, however it also enshrined a corresponding regulation in Germany by law ( see Related links ), the Act was amended in July 2006. Were introduced mandatory labeling for defects copies ( § 7 para 1 No. 4 ), the possibility to award bond -free clearance sales ( § 7 para 1 No. 5), an amendment to the estate granted in the textbook business (§ 7 paragraph 3 sentence 1) and a clarification that the price maintenance under § 8 BuchPrG can only pick for book editions, whose first appearance published more than 18 months.

With the new law of 2002 in Germany to the book price -determining collective lapel is not expired - it is used for the fixed price of magazines as before.

Exceptions

In Germany, the following books are exempt from the book prices:

• Books that are in book award bond -free countries (eg the UK ) laid and imported to Germany
• For cross -border sales within the European Economic Area, unless the books were exported for the sole purpose of re-importation
• As such, marked defects copies,
• Books that are offered as part of a clearance sale.

Furthermore, the prices for books, whose appearance is older than 18 months, are hereby repealed. An earlier cancellation also comes into consideration when the book would lose significant value in reaching a specific date. This is usually the case if the publisher publishes a cheaper paperback edition.

E -Books

The legal situation in the so-called e-books long remained unclear. The scope of the book pricing law applies to " products that reproduce or replace books, music scores and cartographic products.", The Association of German Book Trade, which can admonish violations of the book price, was originally of the opinion that the book price is not applicable to this form of publication. 2008, the association changed his mind completely and explains, among other things with the fear of the erosion of price maintenance as a whole. Since January 2009, the Association sets this view by also, so that the book prices in effect for e -books.

The Berlin Story Verlag undertook with the author Klaus Behling early 2012 the experiment the title last one turns off the light issue as eBook and leave the customer the remuneration in money or other valuables, as there is no information for the determination of prices for e -books give. The publisher was subsequently reprimanded and asked to fix a price or to discontinue the distribution of a prize bond trustee.

Austria

In Austria, the book prices in 2000 adopted the Federal Law on the fixing of book template is: § § / Maintenance / RIS search regulated.

Switzerland

In Switzerland, the book prices were not prescribed by a state law, but by a private law agreement of publishers and booksellers (so-called collective lapel ). This agreement was contrary to antitrust law. The book prices fell in May 2007 after the Federal Court had confirmed the assessment of the Competition Commission and the Swiss Federal Council had rejected an exception for a cartel.

So today there is no book prices. A law to be launched or re-introduction in 2012 failed in the referendum. In the referendum of 11 March 2012, the voters rejected the law with 56.1 % No votes.

Previously, the book prices in Switzerland was regulated differently depending on the language region:

• In the Italian-speaking Switzerland, the book price was always free.
• In French-speaking Switzerland's Book Prize was released in the early 90 's. Before there was a dispute over the book industry price regulation. The Competition Commission ( Comco ) is conducting an investigation concerning excessive pricing by French publishers.
• In German-speaking Switzerland booksellers since 1976 were linked to the initiative of the Swiss Booksellers and Publishers Association of the set by the publishers book price. From 1993, this was organized uniformly in Germany, Austria and German-speaking Switzerland by a collection Reverses. Transactions not signed the lapel were not supplied by the publishers and intermediaries. As a result of investigation since 1998, the Competition Commission forbade both the resale price and the non-delivery. This prohibition became effective after lengthy processes until 2007.

A planned from 2008 federal law on fixed book prices was decided after extensive consultations in 2011 by the Parliament. In a directed against referendum, voters rejected the reintroduction of the book price. It overruled the inhabitants of the German-speaking and Italian-speaking cantons, who rejected the book prices all that the French-speaking cantons, where the law was predominantly consent.

Objectives and action: Theory

Economically speaking, means a fixed book price, that price competition between booksellers is prohibited. Compared to the perfect market, this restriction of competition is inefficient and leads to higher prices, lower sales volumes and excessive profits of the producer ( monopoly profits ). In particular, low-income earners will be negatively affected by higher book prices.

The book price is defended in several countries, especially Germany and other EU countries, with a cultural argument. The declared aims of the book prices are a variety of wide -equipped bookstores that offer a greater number of titles, which goes beyond bestseller and also includes less popular, but culturally valuable item. The greater number of titles obtained by this argument, because that allowed by the book price monopoly profits can be a larger number of titles to be profitable (books have high fixed costs and low marginal costs, and therefore lower requirements higher unit prices areas than higher editions). Because books are not homogeneous goods, argue proponents of book prices (such as bookstores and publishers) with a cross-subsidization: The increase monopoly profits would be transferred from bestsellers to marginal titles and so the spread especially less popular books. In this way, a book price would have a positive cultural effect.

However, there are a number of counter-arguments to the adoption of cross-subsidization by book prices:

• Cross-subsidization of debut authors or other high-risk projects occurs even without book price fixing, as in the hope of landing a bestseller, which is not foreseen as a rule.
• There is no democratic control over the use of the allowed by the state intervention monopoly profits.
• There is no guarantee and no incentive that monopoly profits on bestsellers are actually used to cross-subsidize less popular titles.
• The price elasticity of demand is less than more popular in less popular titles ( at least for the reason that less popular books more reading time and hence higher opportunity cost than Bestsellers claim ). Therefore, the monopoly profits on bestsellers are lower, which contradicts the assumption of cross-subsidization.
• Even in the case of a functioning cross-subsidization is not clear whether the resulting cultural benefits (rising number of publications ) makes up for the cost of market distortion (rising book prices ).

Indicators of the economic impact of the book prices are above all the concentration and market shares of individual publishers and bookstore chains, booksellers density, book prices, sales and sales of the book trade or individual books and the number and variety of available and offered books.

Efficiency -reducing aspects of book price fixing

An efficiency -reducing reasons is listed in the literature that a book price fixing cartels transported traders, represents an obstacle to the choice of the optimal sales channel and supports manufacturers cartels.

Dealer cartels: There are several dealer groups. In addition to small retailers are large retail chains, discounters and online retailers. A book prices now prevents the emergence of discounters and hampers Internet retailer, since their main advantage is the very low price. Exactly this obstruction is in the interest of the stationary retailers and chains. They therefore support the cartel fixed prices for books.

Optimal distribution channel: In the course of the product life cycle, it would make sense for the publisher to change the distribution channel. At the beginning of the life cycle of a high-price strategy makes sense to serve those buyers who like to buy the latest works. Later, it makes sense to lower the price to appeal to the budget-minded customers in large numbers. This strategy does not coincide with the interests of the trade. This would make use of the well-known works to have a sales opportunity for lesser-known. Special offers on the latest bestsellers would therefore be an appropriate means to attract customers. Finally, the customer expects a price reduction after a short time and was raised in a purchase decision on a to get the book after some time cheaper. The book prices prevented here in the interest of the publisher effective loss leaders of trade and signals to the buyer that he has no chance to get the book in a short time cheaper.

Also a manufacturer cartel is supported by a book price. A cartel is always under pressure, that it is favorable for individual cartel members, secretly easy to undercut the cartel prices. Thus it is gaining market share and profits but of the excessive prices. A book prices with fixed margins secures the cartel members against the segregation of individual members.

Efficiency -enhancing aspects of book price fixing

An efficiency -enhancing reasons is listed in the literature that a book price to a higher number of outlets lead and the level of service lifts.

A high number of outlets acts often promote sales ( a special form of Say's theorem ). Through a book price, price competition, thus even small dealers with unfavorable cost structures on the market have a chance decreases. This increases the number of booksellers in turn results in the theory to a higher number of outlets and thus higher sales of publishers. However, even in countries with fixed book prices a noticeable concentration in the market for large retail chains has taken place.

Due to the elimination of price competition, the importance of services rises as the only remaining option to stand out from the competition. Service can now, for example, Advice quality, variety of the offer or the like mean. In the book trade in particular the advice and the ordering of all available books on the wholesalers is called. These services could be offered only because ruinous competition was off about the price per book price. In particular, the elimination of the free-rider problem (the client can be in bookstores advise and ordered on the Internet ) is called here.

Studies on the effects of book price fixing

In the discussion of the book price at first, the question arises whether one viewed primarily books as freely tradable goods, and must face the market selection, or whether the book is a cultural asset that deserves special protection. If one accepts the privileged nature, as well as in the next question is whether the book price is a necessary and appropriate tool to enforce this protection.

On the occasion of the discussion about the re-introduction in Switzerland ( FHNW) was a study on the impact of the abolition of book price fixing in the German Switzerland commissioned at the University of Applied Sciences Northwestern Switzerland. This study examined the development in German-speaking Switzerland during the first 10 months after the lifting of price fixing and made ​​comparisons with and without fixed prices between regions or countries.

The study concluded that 10 months after the abolition of book price fixing no statistically significant changes in book prices could be documented. " Clearer signals can be expected in about 3 years. ", It says in the study of FHNW. From a consumer point of view, however, be observed that since the abolition of book price especially on the Internet a real price war was sparked. As an example of this is here in addition to the withdrawal of the German value added tax granted 20% discount on the regular German sales price mentioned, which Amazon.de granted since spring 2010 on all book orders for deliveries to Switzerland and the Principality of Liechtenstein.

While the price development thus already present first results are currently lacking for Switzerland actionable results to other aspects such as the development of the number of bookstores, or the number of produced books. For the UK, where the so-called net book agreement was eliminated in 1997, it was found that the number of newly laid books has increased steadily despite abolition of book price fixing.