Sky and 21st Century Fox: Proposed Merger — House of Lords, 2017-03-06
Topic: Mixed Topics
Richard Keen (Conservative, Centre-right): My Lords, with your Lordships’ leave, I will repeat a Statement made in the other place by my right honourable friend the Secretary of State for Culture, Media and Sport. "I promised to give the House an update about progress on the process for the bid by 21st Century Fox to acquire the 61% share of Sky which it does not already own. I can confirm that formal notification for the proposed merger of Sky and 21st Century Fox was lodged with the European Commission on Friday 3 March and that I, on Friday, wrote to the parties to inform them that I am minded to issue a European intervention notice on the basis that I believe there are public interest considerations, as set out in the Enterprise Act 2002, that may be relevant to this proposed merger that warrant further investigation. To be clear, I have not taken a final decision on intervention at this stage but have indicated what I am presently minded to do. In line with the guidance that applies to my quasi-judicial role, I will aim to come to a final decision on whether to intervene in the merger within 10 working days of Friday’s notification. Before I make my final decision, and in line with statutory guidance, I have invited further representations in writing from the parties and have given them until Wednesday 8 March to provide them In December, I made clear that I would make this quasi-judicial decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible with all relevant information in front of me. To enable this, I instructed my officials to commence work to analyse the relevance of the public interest considerations to the merger and to consider the available evidence. Since the 9 December announcement, I have received representations from the parties to the merger, as well as representations made in writing to the department from a range of people and organisations. They include more than 8,700 responses made in connection with the department’s consultation on the Leveson inquiry and its implementation which referred to the merger. Given my quasi-judicial role, I can consider only evidence which is relevant to my decision On the basis of this preparatory work, I have issued a ‘minded to’ letter to the parties on two of the public interest grounds specified in Section 58 of the Enterprise Act 2002. The first public interest ground on which I am minded to intervene is media plurality. That is, specifically, the need for there to be a sufficient plurality of persons with control of the media enterprises serving audiences in the UK. My concern here is that the merger will bring under common or increased control a number of significant news sources, including Sky News and News Corporation’s newspaper titles. As a result, I have told the parties that I am minded to ask for a report from Ofcom on the impact of the merger on media plurality before considering the matter further The second public interest ground on which I am minded to intervene is commitment to broadcasting standards. This ground relates to the need for persons carrying on media enterprises, and for those with control of such enterprises, to have a genuine commitment to attaining broadcasting standards objectives. As I have indicated to the parties to the merger, I am concerned about the nature of a number of breaches of broadcasting standards by 21st Century Fox as well as the behaviour and corporate governance failures of News Corporation in the past. In light of those matters, I am minded to intervene on this ground and to ask Ofcom to investigate them further. I also want to be clear on what this means in terms of the overall process. My decision on whether to intervene is not the end of the matter. Instead, it would recognise that these public interest considerations may be relevant to the merger and will trigger action by Ofcom to assess and report to me on them and the Competition and Markets Authority to report on jurisdiction. There would then be a further decision-making stage for me to undertake in light of those reports, but we are not at that stage yet. As I said at the outset, I will aim to take the final decision on whether to issue a European intervention notice within the 10 working days set out in the guidance and will return to this House to notify Parliament of this decision I am today, as I said I would, keeping this House appropriately informed of developments on this important matter, and it is right that I continue to do so. However, given this remains a quasi-judicial process in which I retain a decision-making role for the next 10 days, and potentially beyond, it would be inappropriate for me, or any other member of this Government, to comment on the substantive merits of the case. I hope this update is helpful to honourable Members and that this Statement gives an opportunity to debate this important issue, but at the same time I hope that honourable Members will respect the limits of what I can say given my ongoing decision-making role".