Media mogul Rupert Murdoch suffered a setback today after Culture Secretary Karen Bradley announced she will delay his proposed takeover of Sky and refer the bid to competition authorities.
Officials and lawmakers have expressed concern about Murdoch’s growing influence over the media and the potential impact on public information if news coverage becomes less impartial or lacks diverse perspectives. Bradley told the House of Commons that UK telecoms regulator Ofcom had concluded the deal would give the Murdoch family “increased influence” over the UK news agenda and the political process.
Rupert Murdoch’s company, 21st Century Fox, is the bidder. Fox, whose news channel topped US cable ratings last year for the first time, already owns 39 percent of Sky and is seeking permission to complete a full takeover.
“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,” Bradley said, signaling a more detailed review is likely.
This is not Murdoch’s first attempt to acquire Sky. A previous bid was abandoned amid the phone-hacking scandal that involved publications owned by Murdoch’s News International and led to the closure of the News of the World newspaper.
Tom Watson, then shadow Culture Secretary, told the Commons that assurances from the Murdoch family were “not worth the newsprint they are written on,” arguing that lessons from the phone-hacking scandal had not been learned. He called for a review of the regulatory framework and warned that if the current Conservative government would not act, a future Labour government would.
Bradley plans to refer the proposed takeover to a 24-week phase two investigation by the Competition and Markets Authority. Separately, the European Commission had authorised 21st Century Fox’s acquisition of Sky in April.
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