Media: All about ... Magazine distribution.

The proposed changes could threaten niche magazines.

Sometime in the late 90s, as UK competition law started coming into line with European Union practice, the UK's magazine and newspaper distribution industry suddenly found itself potentially on the wrong side of the law.

The industry in the UK has always been carved up on a regional basis.

Within each territory, there's only one distributor operating and each has what is called absolute territorial protection. Industry-wide agreements prevent wholesalers from meeting unsolicited requests to supply retailers outside their allocated territories.

In other words, if you run a corner shop, you can't play one distributor off against another to get better terms. Worse still, you have little leverage if a distributor decides you're not a proper newsagent and refuses to supply you at all.

But regional monopolies are not exactly uncommon, especially when it comes to economically important infrastructures, from railways to cable TV. It makes no sense to have three train operators jostling for position on, say, the London to Brighton line.

Obviously there are fewer safety issues in distribution - but that hasn't made the Office of Fair Trading's task any easier, as it tries to clarify the industry's position. Last week, the OFT invited responses to its preliminary findings - in its wisdom, it has plumped for a split decision. It proposes to allow territorial monopolies for newspapers but not for magazines.