Fox-Sky Merger — House of Commons, 2017-07-20
Topic: Domestic Commerce
Karen Anne Bradley (Conservative, Centre-right): With permission, Mr Speaker, I would like to make a statement on the Fox-Sky merger. Three weeks ago, I came to the House to set out my initial decisions in relation to the proposed merger between 21st Century Fox and Sky plc. Having referred the bid for a phase 1 investigation by Ofcom and the Competition and Markets Authority in March, the decision before me was whether or not to refer the merger to a fuller phase 2 investigation by the CMA I told the House then that, following Ofcom’s advice, I was minded to refer the merger to the CMA on the grounds of media plurality, and minded not to refer on the grounds of commitment to broadcasting standards. At the same time, I confirmed that I had received a set of undertakings in lieu of referral from the parties and was minded not to accept them I also set out the steps that I would follow for the next phase of the decision. I said that, as required by legislation, I would allow the parties to the proposed merger the opportunity to make representations on my position on media plurality. In the interests of transparency and ensuring that all the evidence had been considered, I would allow all interested parties, including the public and parliamentarians, to have their say, particularly on the question of commitment to broadcasting standards. I set last Friday as the deadline As the House knows very well, decisions by the Secretary of State on media mergers under the Enterprise Act 2002 are made on a quasi-judicial basis. That means that I must take my decision only on the basis of evidence that is relevant to the specified public interests. I must act independently and follow a process that is scrupulously fair and impartial. I have sought throughout this process to be as transparent and open as possible, and I have kept the House informed at every available opportunity. In keeping with that spirit, I have come to the House today to give as full an update as I possibly can before it rises for the recess I can confirm that I have received detailed representations from 21st Century Fox and a letter from Sky, which I will aim to publish, subject to statutory and confidentiality requirements, once I have taken my final decision. I also received a letter from Lachlan and James Murdoch on Friday last week, and a further letter from 21st Century Fox this Monday, which it has since published The detailed representations from 21st Century Fox raise a number of points on Ofcom’s public interest test report and the analysis underpinning Ofcom’s recommendations, contesting Ofcom’s view that the transaction raises public interest concerns that justify referral to a phase 2 investigation by the CMA. Neither of the parties has offered any further or amended undertakings in lieu of referral. I have received a substantial number of responses in relation to my referral decision In coming to my decision on this case, I must take account of all relevant representations made to me. As a result, my final decision on referral can be made only after I have fully considered all relevant evidence on both the plurality and the commitment to broadcasting standards grounds. Given that the consultation closed only on Friday, there has not been time to consider all the representations, and I am not in a position today to make my final decision on referral What I can do, however, is confirm to the House that, having carefully reviewed the parties’ representations, and in the absence of further proposed undertakings, I am currently still minded to refer on the media plurality ground and still minded not to accept the undertakings in lieu of a referral To be clear, as I have said, I must fully consider all relevant representations before reaching a final decision, and I will take the time I need to look at the many I have received, balancing the need for careful consideration of relevant evidence with the merger parties’ legitimate need for a prompt decision. However, I have prioritised considering the parties’ representations and the detailed points they have made to me. While some of the points they have raised may benefit from closer examination by the CMA at phase 2 in the event that the merger is referred, there was nothing in their representations that, at this stage, has led me to change my mind about the appropriateness of referral. Unless new evidence from other representations changes my mind in the coming weeks, the bid will therefore be referred to a phase 2 review on at least one ground—media plurality. I thought it would be helpful to set out my current view to the House, given the public interest in this case, and also to the parties so that they can be as clear as possible about my intentions and the likely next steps for this bid Bearing in mind the obligation to act promptly as part of this quasi-judicial process, I expect I will be in a position to come to a final decision on referral, including in respect of the broadcasting standard ground, in the coming weeks, and potentially during summer recess. Should this prove to be the case, and as I did previously where stages of the merger have taken place outside of the House sitting, I will write to the parties informing them of my decision, as well as to the Leaders and Speakers of both Houses, to the hon. Member for West Bromwich East (Tom Watson) and to the Chair of the Culture, Media and Sport Committee, whom I was pleased to see reappointed last week As I have said previously, I trust that making this statement to the House gives another welcome opportunity to discuss this important issue, and further cements my undertaking to ensure openness and transparency. I commend this statement to the House.