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I think one of the big issues for the OFT will be whether the relationship between the publisher and the retailer is that of wholesaler and seller (i.e. the seller is buying stock himself but is free to sell on stock at whatever price he wants) or whether the retailer will be designated an "agent" of the publisher (and therefore selling for the first time on behalf of the publisher).
If it's the former then the Model could be anti-competitive. However if its the latter (as no doubt the publishers will argue) then it might not be anti-competitive as the retailer simply steps into the shoes of the publisher, who can then dictate the price at which a product can be sold. I don't think the phrase "Agency Model" is an (un)happy coincidence.
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