The US District Court for the District of Columbia Monday blocked Penguin Random House’s proposed $2.2 billion acquisition of Simon & Schuster on the grounds that the consolidation would substantially reduce competition in the publishing market. Judge Florence Y. Pan found that the US government demonstrated that “‘the effect of [the proposed merger] may be substantially to lessen competition’ in the market for the U.S. publishing rights to anticipated top-selling books.”

The Department of Justice (DOJ) asked the court to block the merger, arguing that the consolidation would particularly result in detrimental effects on the market for anticipated top-selling books and lead to reduction in bargaining power for the authors. , “Today’s decision protects vital competition for books and is a victory for authors, readers, and the free exchange of ideas,” said Assistant Attorney General Jonathan Kanter of the DOJ Antitrust Division, “The proposed merger would have reduced competition, decreased author compensation, diminished the breadth, depth, and diversity of our stories and ideas, and ultimately impoverished our democracy.”

The district court’s opinion is temporarily under seal since it contains confidential information. Once the parties have filed redactions, the court will review the proposed redactions and publish the opinion.