Special Report 80
This special report, drawn up at our own discretion, was prompted by a judgement handed down in 2016 in which the Court of Justice of the European Union (CJEU) ruled that the German system of fixed drug prices was incompatible with the European principle of the free movement of goods. From a legal perspective, the protection of books as cultural assets is, in principle, a cultural policy objective that should be recognised. However, this cultural policy interest must be weighed against the interest in undistorted competition. Competition within the single market is protected by EU law. National regulations on fixed book prices significantly interfere with the fundamental freedoms of market participants operating across borders and also constitute a serious market intervention. Under EU law, objective evidence would therefore be required to show that fixed book prices generate cultural added value sufficient to justify the associated market intervention.
For these reasons, the Monopolies Commission advocates the abolition of fixed book prices. Before any further measures are considered – for example, to protect books as cultural assets – the objective of such protection must first be defined. Secondly, it must be assessed whether and to what extent there are shortcomings in protection. Only on this basis can a decision be made, thirdly, as to which instruments can be used to remedy these shortcomings.
