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Relx tumbles on open access debate

The University of California has terminated its subscriptions with Relx’s Elsevier business
March 6, 2019

Relx’s (REL) shares fell by around 7 per cent following news that the University of California (‘UC’) had terminated its contract with its Elsevier business. A press release from the UC Office of the President said that “Elsevier was unwilling to meet UC’s key goal: securing universal open access to UC research while containing the rapidly escalating costs associated with for-profit journals”. It noted UC’s 10 campuses represent almost a tenth of all US publishing output.

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The contract was worth $11m compared with Relx’s revenues were £7.49bn in 2018. However, the market reaction reflects concerns about other academic institutions and the broader open-access debate rather than the size of the contract.

A spokesperson for Relx stated “Elsevier is happy to provide customers with services under the subscription model or under an open access model as long as it is sustainable. Almost all our journals have an open access option, but researchers have a choice, and at the moment more than 90% currently choose to publish for free under the subscription model.”