Newton hails new tech law at Bloomsbury investor reception

Bloomsbury chief executive Nigel Newton has hailed the expected passing of the Digital Markets, Competition and Consumers (DMCC) Bill at a cocktail party to celebrate the group’s strong past-year financial performance.

Held at The Lookout, a 50th floor viewing gallery at 8 Bishopsgate in the City, the party was attended by authors, including The British Book Awards Author of the Year Katherine Rundell, bestselling writer Jessie Burton, debut author Harriet Constable and First Dates’ star Fred Sirieix, as well as investors, analysts and Bloomsbury executives.

Earlier in the day Bloomsbury unveiled record sales and profits, with revenue up 30% and profit up £49m. In a short speech, Newton referenced the firm’s recent success having briefly been valued at more than £500m on the UK Stock Exchange, and praised shareholders for allowing it to retain its independence as well as supporting its investment and acquisitions strategy.

He also advised the audience to invest in the company – "the only pure listed publisher" – to tap into the growth across the books sector with industry sales expected to rise from £11bn to close to £17bn by 2030.

He said there had been concern that the DMCC Bill would not pass into law with a General Election called earlier this week, but it was now expected to get Royal Assent as part of the wash-up period before the dissolution of parliament. The DMCC Bill expands the powers of the Competition and Markets Authority (CMA) to regulate anti-competitive behaviour by dominant companies in digital markets. Firms designated as having Strategic Market Status will have to comply with a series of obligations.  

A recent past president of the Publishers Association, Newton welcomed this: "This is a bill that we’ve been pushing for as an industry to try to create a level playing field between the tech platforms and their suppliers. With their huge power comes great responsibility, but it seems that only a regulator can inculcate that responsibility."

Dan Conway, c.e.o. of the Publishers Association, added: “We and our members have been champions of the Digital Markets, Competition and Consumers (DMCC) Bill and welcome its passage into law today. We have followed the Bill from its inception and as it made its way through both Houses, feeding in the views of our sector at every available opportunity. This is a vitally important Act of Parliament for many industries including ours, hard fought and with attempts to water it down resisted. It is a real testament to the cross party support the Bill has received.  

"As important as it is to recognise and welcome this important moment, we must now seize the opportunity to make the new Act impactful. For the publishing sector, that means that Amazon must be amongst the first wave of companies scrutinised and regulated. Amazon have done great things in opening up digital markets, but anti-competitive practices are harming publishers, booksellers, readers, and hampering innovation, which needs to be urgently addressed by the CMA.”