Media tycoon Rupert Murdoch’s proposed takeover of Sky has hit a significant setback after the Competition and Markets Authority (CMA) provisionally concluded the deal would not be in the public interest. The decision raises fresh concerns about media plurality and the potential for concentrated media ownership to influence public debate and political agendas.
Murdoch controls a wide range of high-profile media assets worldwide, and critics warn that full ownership of Sky would further narrow the diversity of voices available to UK audiences. The CMA’s provisional findings focus on two central issues: media plurality and the maintenance of broadcasting standards. While the inquiry remains provisional, the watchdog’s conclusions underscore the seriousness of these risks.
Concerns about media plurality
Anne Lambert, Chair of the CMA’s independent investigation group, emphasized the democratic importance of a diverse media landscape: “Media plurality goes to the heart of our democratic process. It is very important that no group or individual should have too much control of our news media or too much power to affect the political agenda.”
Lambert added that the CMA had provisionally found the proposed Fox/Sky merger would be against the public interest, warning that the Murdoch family could gain excessive control over UK news providers and wield undue influence on public opinion and political discourse.
Broadcasting standards examined
The CMA’s in-depth probe also evaluated whether the merger would undermine broadcasting standards. It examined current and historical compliance records across the companies involved. The watchdog found issues with the unedited international simulcast of Fox News when broadcast in the UK, noting problems with compliance. However, the CMA found that Fox’s UK-focused channel operated with “detailed and effective policies” designed to meet broadcasting standards.
The review also considered News of the World, a publication that ceased in 2011 after revelations of phone-hacking and other unlawful practices. At the time, the newspaper displayed “serious shortcomings” in adhering to press standards and the law. The CMA acknowledged that News Corp. has since implemented procedures intended to address those past failings.
Separately, the CMA noted ongoing investigations into allegations of sexual harassment at Fox News in the United States. The regulator concluded these matters did not bear directly on the commitment to broadcasting standards in the UK and therefore did not influence the provisional decision.
Potential remedies proposed
Although the CMA’s provisional stance opposes the merger as proposed, the regulator outlined potential remedies that could address its concerns. One option would be to spin off Sky News into a separate public company with publicly traded shares. The CMA set out expectations for the governance of any spun-off Sky News, recommending a board composed mainly of independent directors, including at least one director with senior journalistic or editorial experience. The chair should be independent, and approval from this independent chair would be required for appointing or removing the Head of News or making material changes to that role’s authority or reporting lines.
To protect editorial independence and lessen the risk of influence from Fox News executives or board members, the CMA also suggested creating a Sky News Editorial Board made up predominantly of independent members. This board would be required to report annually to Ofcom on any attempts by external actors to influence Sky News’ editorial leadership.
Regulatory timeline and next steps
Murdoch’s takeover bid, valued at £11.7 billion ($14.6 billion), was launched in December 2016. While the acquisition received prior clearance from Ofcom and the European Union, then-Culture Secretary Karen Bradley referred the deal to the CMA in September for an in-depth investigation. The CMA has a statutory deadline to finalize its report by May 1, 2018, after which its findings will be passed to the Secretary of State for Digital, Culture, Media and Sport—at that time Matt Hancock—who will make the final decision.
The CMA’s provisional decision highlights the balance regulators must strike between commercial consolidation and preserving a plural, independent media landscape. Any final outcome will shape the future of news distribution and editorial independence in the UK, with implications for how citizens access varied and trustworthy information.
Image credit: “Rupert Murdoch 2011 Shankbone” by David Shankbone, used under CC
What are your thoughts on Murdoch’s takeover bid of Sky? Let us know in the comments.