Books as cultural goods

From: Swissinfo website

For years the Net Book Agreement (NBA) allowed publishers in the German regions of Switzerland to fix prices of books. Now the Swiss Competition Commission (Comco) has come down on this and the NBA for German-language books sold in Switzerland is history. And the government announced its final decision stating that it did not wish to oppose Comco. As a consequence, the book industry fears that many small, independent bookshops might close.

This is beginning to sound like one of those vinyl long-playing records stuck in a groove.

"This is bad news," says Jacques Scherrer, secretary-general of the Swiss Association of Distributors, Editors and Libraries. "The government hasn't recognised the status of the book as a cultural item ..."

That is an interesting point. On one hand I am totally anti-protectionist, because it only comes back to bite you. Goods must be market-driven. On the other I am appalled at the way commercial interests determine what is published and what is not. (Ditto for music - another cultural item.)

Lets look at it a little closer. Big bookshops have more muscle and can get their goods (in this case books) cheaper. Small bookshops have to pay more for the same goods. Big bookshops can bring prices very low to kill competition. Is that not anti-competition? But they can also bring it down so low that they kill themselves. Ask Borders (UK) about it. Small bookshops do have some advantages big bookshops don't have. Firstly, they are almost always run by people who read and love books. They can specialise in certain areas and be very good at it. They can add value by teaching and educating, building up relationships and communities, and becoming members of that same community.

The problem arises when the small bookshops try and be like the big boys, and sell the same stuff. Then they get screwed. Forget the bestsellers; leave that to the rice and sugar merchants. A small bookshop should focus on gourmet food instead, and add a little service. The rice and sugar market is bigger but also has more competition.

Sorry, no matter how hard I try I cannot support anti-competition laws.

Fullstory: http://www.swissinfo.org/eng/top_news/detail/Government_closes_chapter_on_book_agreement.html?siteSect=106&sid=7778315&cKey=1178131911000