The Press and Journal (Inverness, Highlands, and Islands)
Competition: Fox News risk to Sky bid.
Competition and ‘partisan’ TV journalism worry culture secretary
Rupert Murdoch’s £11.7billion bid to take full control of Sky faces a potential wider investigation by the competition regulator, UK Culture Secretary Karen Bradley has said.
She told MPs she is now also minded to ask the Competition and Markets Authority (CMA) to conduct a fuller investigation into 21st Century Fox’s bid on the grounds of “genuine commitment to broadcasting standards”.
“Will Fox have a real commitment to broadcasting standards objectives?”
It followed her confirming she still “intends” to ask the CMA to examine the proposed merger on the grounds of media plurality.
Ms Bradley outlined her decision on whether to refer the bid for a six-month investigation to the CMA in a statement in the Commons yesterday.
On broadcasting standards, she said her first concern was around Fox’s compliance procedures for the broadcast of Fox News in the UK.
She added: “The fact that Fox belatedly established such procedures does not ease my concerns, nor does Fox’s compliance history.”
Ms Bradley said concerns were also raised about the “Foxification” of Fox-owned news outlets internationally, adding: “I consider it important that entities which adopt controversial or partisan approaches to news and current affairs in other jurisdictions should, at the same time, have a genuine commitment to broadcasting standards here.
“These are matters the CMA may wish to consider in the event of a referral.”
Regulator Ofcom has decided concerns about corporate governance failures at Fox do not warrant a referral but Ms Bradley said it would be “appropriate” for these to be considered by the CMA.
She added: “In this context, my proper concern is whether Fox will have a genuine commitment to attaining broadcasting standards objectives.”
Broadcasting giant Sky, which is listed on the FTSE 100 Index, saw its shares fall 3% after the announcement.
Shadow culture secretary Tom Watson said: “I think it’s the first time a minister in the current government has ever stood in the way of what the Murdochs want, and frankly not before time.”
He also said the move reflected Ofcom failings, given the “long history of regulatory non-compliance and of corporate governance failure” by the Murdochs.
Mr Watson then urged Ms Bradley to “go ahead” with part two of the Leveson inquiry into the culture, practice and ethics of the press.
“She’s shot her fox with the Murdochs now,” he said, adding: “She’s burnt her boats. They already don’t like her. It liberates her, so go on secretary of state – do the right thing. Go ahead with Leveson 2.”