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The Swedish Competition Authority concludes investigation into subscription services for digital books

The Swedish Competition Authority has investigated a suspicion that the delivery conditions set by the company Storytel to make its catalog of digital books available to a competitor constitute an abuse of dominant position.

In December 2022, Nextory, a provider of digital book subscriptions, filed a complaint with the Swedish Competition Authority. Nextory believed that the conditions set by Storytel to grant access to its catalog of digital books were unreasonable. Among other things, the company argued that they would have to pay an excessive guarantee sum for access to the catalog.

The Swedish Competition Authority's investigation has primarily focused on whether the delivery conditions set by Storytel to grant access to the catalog were unreasonable and posed a risk of exclusionary effects in violation of competition rules. Concerns about exclusion have applied to both digital book subscription services in Sweden and publishers in Sweden.

During the Swedish Competition Authority's investigation, it has emerged that Storytel has adjusted its behavior. The company has, at least since mid-November 2023, changed its actions in a way that reduces the previously identified concerns regarding competition. Moreover, during the fall of 2023, the companies have resumed contract negotiations. This means that the Swedish Competition Authority cannot effectively investigate and assess the delivery conditions while negotiations are ongoing.

In light of this, and especially considering that Storytel has adjusted its behavior, the Swedish Competition Authority assesses that there is no reason to continue investigating whether the conduct violates the prohibition of abuse of a dominant position under competition rules. However, the decision to conclude the investigation does not imply a stance on whether the conduct is in compliance with competition rules.

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Last updated: 2023-12-22

News21 december 2023