Amazon's Proposed Acquisition of The Book Depository Under Scrutiny

Amazon announced yesterday that it plans to acquire UK-based outfit The Book Depository. Because of the nature of the deal, the two companies are two of the biggest book sellers in the UK, the Office of Fair Trading is now asking for comments from interested parties on whether the deal should be allowed to pass or not.

It's fairly standard procedure and it's rare for this type of reviews to lead to the deal being blocked, but this particular deal may be met with more resistance than others.

"This is a standard merger inquiry that we opened today,” OFT spokesperson Frank Shepherd told paidContent. Those with stakes in the deal, either competitors or members of the public that have concerns about competition or public interest can now make those concerns heard.

The Book Depository, which offers free shipping in over 100 countries and has over six million titles available is fairly loved by its users and many are, perhaps rightfully, weary of Amazon gobbling up the book seller.

The fears are that Amazon will either remove the free shipping component, which is a big attraction to the site's large international audience, or lower the inventory numbers.

The competition, what little there is, and publishers are also worried about the implications. Amazon already owns about 70 percent of the UK market, with The Book Depository being one of the biggest competitors.

The Book Depository aims to make as many titles available to its customers as possible and even prints some titles itself, when there is demand. This focus has made it fairly popular with book fans and earned it a lot of good will.

Amazon on the other hand, is a bit more pragmatic in everything it does, cost cutting is the one big focus at the company. Granted, Amazon does have a fairly good track record when it comes to acquisitions. The Book Depository has also said, countless times, that it will remain an independent entity, regardless of the acquisition.