The Association of Canadian Publishers and the Writers' Union of Canada have criticized Investment Canada and the Competition Bureau's approval of Bertelsmann's acquisition of Random House of Canada and its merger with Doubleday of Canada. At issue is the ACP's contention that because Canadian Abraham Simkin owned approximately 71% of Doubleday, under Canadian law his shares should have been offered to other Canadians.
"We're not trying to reverse the decision, but we are concerned that this ruling has set a new precedent" with respect to foreign ownership of Canadian publishing companies, said Jack Stoddard, president of the ACP. Currently, except under certain circumstances, Canadian publishers are required to be majority owned by Canadians. Stoddard told PW that the ACP will most likely call for hearings to determine if Investment Canada and the Competition Bureau are upholding the law.
The ACP is particularly concerned about a weakening of Canada's publishing ownership policy because Investment Canada is currently reviewing Pearson's purchase of Prentice Hall. According to Stoddard, a merger between Prentice Hall and Pearson's Addison Wesley Canadian subsidiary would give Pearson a bigger share of sales to the educational marketplace than Random House's share of the trade market.
"The [Bertelsmann] decision runs counter to Canada's long-standing goal of promoting diversity in publishing. The decision also underscores a trend toward less editorial diversity and toward corporate monoculture, now primarily foreign-owned," Stoddard argued.
