Penguin Random House controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Antitrust challenge to the Simon & Schuster acquisition
The U.S. Department of Justice sued to block the proposed acquisition, arguing that the combined company could gain excessive leverage in negotiations for major books and author advances. The court ruled for the government in 2022, and the deal was terminated.
2021
US sues to block Penguin Random House–Simon & Schuster deal
Lawsuit filed
The US Department of Justice filed an antitrust lawsuit to block Penguin Random House's proposed acquisition of Simon & Schuster. The complaint alleged that the deal would reduce competition in acquiring publishing rights to anticipated top-selling books.
Company response
Denial — Penguin Random House
In a statement, Penguin Random House and Simon & Schuster stated that they would fight the lawsuit
Source excerpt
An antitrust lawsuit filed Tuesday in federal court warns that such an acquisition would hurt competition for top-selling manuscripts.
Karp wrote that his company and Penguin Random House see no basis for the lawsuit and that they plan to fight it.
The complaint alleges that the acquisition of Simon & Schuster for $2.175 billion would put Penguin Random House in control of close to half the market for acquiring publishing rights to anticipated top-selling books, leaving hundreds of individual authors with fewer options and less leverage.
2021
Penguin Random House responds to damaged comic shipments
Company response
Penguin Random House acknowledged that its first week shipping Marvel products did not meet expectations and that some retailers received damaged products. It apologized, said it was working to resolve claims and packaging issues, and expected material improvements to begin with October 20 shipments.
Company response
Apology — Penguin Random House
Our apologies.
Remediation — Penguin Random House
We are working continuously to reach out and positively resolve every claim.
Source excerpt
We expect to implement material improvements beginning with your October 20th shipments and further evolving thereafter.
We know that our first week shipping Marvel product didn't fully meet our expectations, and some of you received damaged product. Our apologies. We are working continuously to reach out and positively resolve every claim.
2021
UK competition watchdog investigates Penguin Random House–Simon & Schuster deal
Investigation
The UK Competition and Markets Authority launched an investigation into Penguin Random House’s proposed $2bn takeover of Simon & Schuster, considering whether the deal would substantially lessen competition in UK markets. The deal had not been completed.
Source excerpt
The UK competition watchdog has launched an investigation into Penguin Random Houseâs $2bn (£1.45bn) takeover of Simon & Schuster, a deal rivals have warned will create a âbehemoth of booksâ with too much power in the global publishing industry.
On Monday, the Competition and Markets Authority said it was considering whether the deal, which cements PRHâs position as the worldâs biggest book publisher, would result in a âsubstantial lessening of competition within any market or markets in the United Kingdom for goods or servicesâ.
2020
Internet Archive copyright lawsuit
Penguin Random House joined other publishers in suing the Internet Archive over its digital lending practices, alleging that the program unlawfully reproduced and distributed ebooks and deprived authors and publishers of revenue.
2020
Audible and publishers resolve Captions lawsuit
Settlement
Audible and a group of publishers resolved their dispute over Audible Captions, a feature the publishers had alleged converted and distributed audiobook text without authorization. Attorneys for the parties said they expected to submit settlement documents by 21 January. The source provides no further details about the terms of the settlement or its outcome beyond the expected filing.
Audible and the publishers resolved their dispute over Audible Captions, which publishers had alleged converted and distributed audiobook text without authorization. Their attorneys said they expected to submit settlement documents by 21 January; the source provides no further settlement details.
Source excerpt
Seven publishers, including the “Big Five” – Penguin Random House, Hachette, Simon & Schuster, HarperCollins and Macmillan – sued Audible in August
“Audible Captions takes publishers’ proprietary audiobooks, converts the narration into unauthorised text, and distributes the entire text of these ‘new’ digital books to Audible’s customers,” said the lawsuit.
In a letter filed this week in federal court in New York, Audible’s attorneys, writing on behalf of both sides, announced that the parties had resolved their disputes and expected to submit the settlement documents by 21 January.
2020
Arthur Conan Doyle estate sues Netflix over alleged copyright infringement
Lawsuit filed
The estate of Arthur Conan Doyle sued Netflix and other parties, alleging copyright infringement related to portrayals of Sherlock Holmes in a film. The article reports the allegations; it does not report a court determination.