Culture Secretary Karen Bradley says she is minded to refer 21st Century Fox’s £11.7 billion takeover of Sky to the Competition and Markets Authority (CMA) amid concern over media plurality.
It follows an Ofcom report on media plurality that said the takeover would give the Murdoch Family Trust an increase in material influence on UK public life. “The transaction raises public influence concerns as a result of the risk of increased influence by members of the Murdoch Family Trust over the UK news agenda and the political process with its unique presence on radio and television, in print, and online”.
However, she is not minded to refer the merger on the grounds of genuine commitment to broadcasting standards.
Speaking in the House of Commons, the Secretary of State said she has invited further representations from the parties to the merger.
The statutory process requires the Secretary of State to give the parties involved the opportunity to make representations before making a final decision. They will have until July 14 to do so.
In its assessment of broadcasting standards on any breaches of regulatory codes, Ofcom found that Fox’s compliance was in line with comparable broadcasters. It also looked at its record overseas, particularly within the EU, and found no failings.
Ofcom also looked at Fox’s record overseas and did not think that the failings would mean the merged company would not have a genuine commitment to broadcasting standards.
In a bid to mitigate a reference to the CMA, the parties made what they perceived to be a series of concessions in the way Sky News in particular would be run. Undertakings include the establishment of a separate editorial board for Sky News with a majority of independent members, Sky branded news to remain for at least five years, and similar spending levels to at present.
However, Ms Bradley said the proposals were not sufficient, and she remains minded to refer the issue of media plurality to the Competition and Markets Authority.
It’s the last of the rulings that clear the transaction on public interest grounds and follows earlier clearance from the Republic of Ireland, Austria, Germany and Italy.
Earlier this month, Ms Bradley received reports into public interest issues surrounding the acquisition and a separate fit and proper person assessment carried out by Ofcom under the Broadcasting Act that had been delayed by the General Election.
