The Big Five won’t become the Big Four—at least yet.
A federal judge has ruled that Penguin Random House’s planned acquisition of Simon & Schuster violates antitrust laws, the New York Times reports. The ruling blocks the merger that would have changed the publishing landscape in a big way.
Penguin Random House agreed to buy Simon & Schuster in 2020, setting off alarms in the publishing industry among authors who feared the merger would result in less competition, and thus lower wages for writers.
The Department of Justice moved to block the merger in 2021, saying it “would give Penguin Random House outsized influence over who and what is published, and how much authors are paid for their work.”
Penguin Random House argued that the merger would be good for both authors and consumers. But Judge Florence Pan disagreed, ruling that the acquisition would harm competition in the publishing industry.
Among those arguing against the merger was Stephen King, a longtime Simon & Schuster author, who testified against the proposed acquisition at the trial. King told the Times he was “delighted” by the decision, saying, “Further consolidation would have caused slow but steady damage to writers, readers, independent booksellers, and small publishing companies.”
Assistant Attorney General Jonathan Kanter praised Pan’s decision, saying, “Today’s decision protects vital competition for books and is a victory for authors, readers, and the free exchange of ideas.”
Penguin Random House said it would appeal the decision. “The Department of Justice’s focus on advances to the world’s best-paid authors instead of consumers or the intense competitiveness in the publishing sector runs contrary to its mission to ensure fair competition,” the publisher said in a statement.
Michael Schaub, a journalist and regular contributor to NPR, lives near Austin, Texas.