Regulator warned on News Corp bid

Published on 14 Jan 2011 under category: article

Culture Secretary Jeremy Hunt has been warned by solicitors to tread carefully in his regulation of News Corp’s British Sky Broadcasting takeover bid. Concerns were raised after the department sent News Corp, which is owned by Rupert Murdoch, a key document relating to the bid. It is thought that such an action could enable News Corp to offer ‘pre-emptive remedies’, which would effectively remove the need for a full investigation by the Competition Commission on the grounds of public interest.

An investigation by the Competition Commission would centre on the reduced plurality in the UK media sector, which would be potentially endangered by News Corp’s purchase of the remaining 60.9% of shares in BSkyB which is does not currently own. The purchase by Rupert Murdoch’s company, who also owns The Times and The Sun, would establish News Corp as the dominant player in the media market.

Solicitors have warned however that it may be outside of Mr Hunt’s legal powers to conduct further discussions with News Corp, with a view to accepting any undertakings prior to a commission enquiry and that the scope of his role is limited to referring the matter to the Competition Commission.