Can Source be a supplier and a competitor, too?

Much muttering in the U.S. magazine business about Source Interlink's purchase of the enthusiast division of Primedia (see previous post). According to a story in Folio:, among the questions being asked is how can a major distributor impartially deal with its clients when it is one of their competitors? Part of the muttering is caused by the recent exclusive deal that Source Interlink cut with Borders (think Chapter-Indigo) that means competing books will have no choice but to go through Source to get shelf space in one of the biggest retailers in the country. Sound familiar?