Watchdog to probe impact Beeb’s free news has on media
THE BBC is facing an investigation over concerns its website has “damaged” other media outlets, it was announced last night.
Ministers have ordered Ofcom to assess the market impact of BBC News Online on the sector after a review by Dame Frances Cairncross, a former journalist and academic.
The corporation, funded by licencepayers, was picked out by publishers during the review into the future of news as one of the reasons other organisations are struggling to make ends meet.
MPs also claimed it has an unfair advantage over other broadcasters.
Dame Cairncross said: “I heard from a lot of publishers complaints that they couldn’t sell subscriptions because the BBC was offering all the news that people wanted free online.
“It would be very important for the BBC itself just to have absolute clarity about what is happening there, because these accusations are damaging for the BBC.
“And the BBC is producing the kind of news that we think is important. And, therefore, having an investigation by Ofcom of what really is going on seemed a sensible way to go.”
The review found there were 6,000 fewer journalists in the UK than a decade ago.
Straying
Tory former cabinet minister Iain Duncan Smith was critical of the BBC.
He said: “It’s caused a definite problem. I think we have to look at how they operate within the amount of money they have and what damage it causes.”
Democratic Unionist MP Ian Paisley said the Government had not gone far enough in tackling the BBC.
He said: “The BBC has huge firepower when it is compared against ITV.
“That disadvantage must stop and it must stop as soon as possible.”
Culture Secretary Jeremy Wright said he had written to Ofcom asking it to look at the concerns raised in the review as well as whether the BBC was straying too far into softer content.
He said: “It is right that the role of the BBC as a public service broadcaster is appropriately transparent and clear.
“There may be ways the BBC could do more to drive to commercial sites, particularly the local press.”
The wide-ranging Cairncross Review also called for ministers to look at new tax breaks for “public interest” journalism, with direct funding for local public interest news.
It also recommended that tech giants like Google and Facebook should be overseen by a new watchdog to combat the spread of “fake news” on the internet.
The companies have the largest share of online advertising revenue and hold data on their users, which further strengthens their grip on the market, it was said.
In order to create a “level playing field”, the review called for the creation of new codes of conduct, overseen by a regulator, to “re-balance” the relationship.
Facebook chief Mark Zuckerberg was criticised in the Commons for refusing to appear before MPs to answer concerns about his company.
Shadow culture secretary Tom Watson said: “He may think the UK market is not a priority for him but I hope he knows there is a new resolve to deal with the abuses of his company.”