A federal judge blocked the proposed purchase of Simon & Schuster by publishing giant Penguin Random House, saying such a mega-publisher would limit opportunities for authors and opinions to be heard, ABC News reports.
Although much of her decision remains under seal due to “highly confidential information” provided by the parties, U.S. District Court Judge Florence Y. Pan agreed with Department of Justice Antitrust attorneys, who argued that the proposed merger would have a chilling effect on authors’ thoughts and their bank accounts.
Saying the decision “protects vital competition for books and is a victory for authors, readers, and the free exchange of ideas,” Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division noted in a statement, “The proposed merger would have reduced competition, decreased author compensation, diminished the breadth, depth, and diversity of our stories and ideas, and ultimately impoverished our democracy.”