Rupert Murdoch's Sky takeover bid referred to competition watchdog due to 'public interest concern'

Rupert Murdoch is bidding to complete a full takeover of Sky
AFP/Getty Images
Tom Powell29 June 2017

Rupert Murdoch has suffered a setback in his bid to complete a full takeover of Sky after culture secretary Karen Bradley referred the merger to the competition watchdog.

Ms Bradley told the Commons that Ofcom's report into the deal found that it risked the Murdoch family having "increased influence" over the UK's news agenda and the political process.

"On the basis of Ofcom's assessment, I confirm that I am minded to refer to a phase two investigation on the grounds of media plurality," she said.

The Competition and Markets Authority will now conduct a thorough investigation into the £11.7bn bid.

Ms Bradley said Ofcom's report was "unambiguous", telling MPs: "The reasoning and evidence on which Ofcom's recommendation is based are persuasive.

Culture secretary Karen Bradley
PA

"The proposed entity would have the third largest total reach of any news provider - lower only than the BBC and ITN - and would, uniquely, span news coverage on television, radio, in newspapers and online.

"Ofcom's report states that the proposed transaction would give the Murdoch Family Trust material influence over news providers with a significant presence across all key platforms.

"This potentially raises public interest concerns because, in Ofcom's view, the transaction may increase members of the Murdoch Family Trust's ability to influence the overall news agenda and their ability to influence the political process and it may also result in the perception of increased influence.

"These are clear grounds whereby a referral to a phase two investigation is warranted - so that is what I am minded to do."

The government is now due to make a final decision on July 14. Ms Bradley said parties involved in the process can make representations to her before that date.

She added she is "minded not to refer" the bid to a phase two investigation in relation to a "genuine commitment to broadcasting standards".

The culture secretary added: "While there are strong feelings among both supporters and opponents of this merger, in this quasi-judicial process, my decisions can only be influenced by facts, not opinions - and by the quality of evidence, not who shouts the loudest."

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