Regulator considers nobbling Game merger

THE ORIFICE OF Fair Trading here in Blighty has decided that it's going to investigate the sale of the retail chain Gamestation to the retail chain Game.

Gamestation has stores across the country, and is Game's largest high-street rival for computer and video games. Given the virtual monopoly the pair have in the bricks and mortar world, one might expect the buying of one by the other to come under some scrutiny on the basis of competition and racketeering.

The OFT says its worried that the merged firm may raise prices and cut back services, given the lack of competition. It said specifically that raised prices, reduction in range, reduction in quality of service, reduced trade-in values for used games and 'innovation' were major worries.

The tone of the report doesn't make it sound too good for Game, as it may well have to jump through a lot of hoops before being allowed to proceed - hoops it would probably rather avoid for the sake of commercial interests.

Of course, what the OFT fails to mention is that retail's major competition doesn't come from retail, it comes from online. With prices significantly cheaper and ranges rather wider, buying from Game rather than an online retailer is only vaguely preferable to slicing your own toes off. µ