AN investigation has begun into the retail prices of imported magazines. The Minister of State for Commerce, Mr Pat Rabbitte, told the House that distribution of magazines and newspapers in Ireland was controlled by two firms, Easons and Newspread, with Easons having 70 per cent of the market.

Both firms applied a formula for the pricing of foreign magazines which involved Easons striking a deal on the forward price of sterling. It notified Newspread which attempted to make a deal around the same time. The Competition Authority said the arrangement was anti competitive.

The investigation under way by the Director of Consumer Affairs Mr William Fagan, covered purchases and price calculations from January 1st last to date.

Mr Rabbitte was responding in an adjournment debate to Ms Mary O'Rourke (FF) who said with the pound worth significantly more than sterling, British goods should be cheaper. The price of British magazines in the Republic was between 10 and 20 per cent higher than it should be.