Competition policy is OK, with a few exceptions, Magazines Canada tells the feds

Magazines Canada has told a federal competition review that all it wants for the magazine industry is a fair and level playing field and it thinks that's pretty much what it has -- with a few exceptions.

In a submission released today, the association told the Competition Review Policy Panel that it wanted the federal governments variety of policy instruments to continue and to be improved to ensure a "competitive, open and dynamic sector". It recommended no changes be made to the current investment review law, which dates back to 1999 and the Canada-U.S. Agreement on Magazines.

However there are inequities in the current regime, the submission said, and these competitive disadvantages need to be addressed. Among them:

• Direct to consumer pharmaceutical advertising, a huge category, is forbidden to Canadian magazine publishers under the Canada Health Act but are regularly carried by the large number of U.S. originating titles.

"Since 59% of Canadian magazine sales are of foreign titles, the objectives of the Canada Health Act are being seriously undermined with a very significant number of Canadian readers regularly viewing these ads. Additionally, U.S. publishers use these advertising revenues to enhance their editorial products in direct competition with Canadian magazines."

• While Canadian publishers have to pay for 50% of the costs of recycling their magazines, U.S.-originating magazines evade the levy.

"So, while over half of the recycling from the magazine sector is due to magazines imported by foreign publishers, the full amount of the cost of recycling these magazines is borne exclusively by Canadian publishers."

• The provincial liquor commissions who publish magazines and use their monopoly position to essentially suck up all the beverage alcohol advertising.

"Publishers are concerned that these provincial liquor agencies utilize their monopoly status, and the revenues from liquor sales, to enhance their position in the marketplace and effectively eliminate competition through aggressive market practices that private sector competitors cannot possibly replicate."