Penguin, Simon & Schuster Deal Triggers Author Risk Probe at DOJ

The Justice Department’s bid to block Penguin Random House’s proposed acquisition of rival Simon & Schuster reflects its recent focus on individual worker protection in antitrust enforcement.

The $2.18 billion deal, which would combine two of the “Big Five” publishers, would create a market dynamic in which just a few publishers would control the prices paid to workers—or authors in this case—who produce books, the DOJ’s complaint said.

Total author advances paid for anticipated top-selling books by Penguin and Simon & Schuster—the largest and fourth largest U.S. publishers, respectively—together exceeded $500 million in 2020, more than double the amount paid by ...