COMMERCIAL RADIO in BRITAIN BEFORE the 1990S: an INVESTIGATION of the RELATIONSHIP BETWEEN PROGRAMMING and REGULATION

Total Page:16

File Type:pdf, Size:1020Kb

COMMERCIAL RADIO in BRITAIN BEFORE the 1990S: an INVESTIGATION of the RELATIONSHIP BETWEEN PROGRAMMING and REGULATION COMMERCIAL RADIO IN BRITAIN BEFORE THE 1990s: AN INVESTIGATION OF THE RELATIONSHIP BETWEEN PROGRAMMING AND REGULATION EMMA REBECCA WRAY A thesis submitted in partial fulfilment of the requirements of Bournemouth University for the degree of Doctor of Philosophy November 2009 Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognise that the copyright rests with its author and due acknowledgement must always be made of the use of any material contained in, or derived from, this thesis. 2 Acknowledgements My thesis is inspired by fifteen years working in the commercial radio industry. This is where I developed a passion to tell the story of its contribution to broadcasting history. My move to Bournemouth University in 2002 gave me the opportunity to pursue academic goals and during this time I have fortunate enough to work with and learn from world-leading authors in the field of Radio Studies. I would like to offer my warm thanks to Professor Seán Street who originally inspired me to make the big step into doctoral research and whose own work in the field of ILR opened my mind to a story that relatively little had been written or known about. Dr Hugh Chignell has been an ally, critic and confidant on my three-year journey. His advice and guidance has been invaluable. I hope that through future research I have the opportunity to work with such eminent academics again. A special mention must go to Tony Stoller, the former UK radio regulator who has been more than generous in helping me source key people for this project as well as sharing aspects of his own experience in regulation. I regard him as my mentor for this project. My thanks also to radio colleagues who agreed to take part in the research and share their recollections of the ups and downs of ILR. Their kind cooperation and detailed testimonies enrich the story of British commercial radio. Finally, I dedicate this thesis to Gordon and Isaac, whose patience, love and support during the past three years has never wavered, despite the many late night debates, decisions and deadlines. 3 List of Contents Abstract 5 Chapter One: Introduction and Background 6 Research aims and objectives 7 Methodology and approach 11 Literature summary 14 Chapter Two: The Birth of Commercial Radio: The Early Years, 1967-79 31 A political football 33 Tories take it forward 42 Regulating commercial radio 48 Defining ‘meaningful speech’ 55 Music copyright and needle time 68 Chapter Three: Commercial Radio Midterm: Expansion and Innovation, 1979-83 75 Centre Radio – a failure of regulation? 90 Regulation in action 96 The Programme Sharing Scheme 104 Changes to the media landscape 110 Breaking point 117 Chapter Four: Regulation Reform: 1984-89 120 1984 – Brave New World 121 The ‘Heathrow Conference’ 138 A pivotal moment 161 Peacock, policy and deregulation 168 Demise of the IBA 175 Chapter Five: Conclusion 182 Key research findings 183 Areas for further investigation 200 References 203 Appendices 236 4 Abstract Emma Rebecca Wray Commercial radio in Britain before the 1990s: An investigation of the relationship between programming and regulation. Today’s British commercial radio environment consists of over three hundred local, regional and national radio stations. Many operate a concentrated music format, designed to meet the demands of a defined target audience. This is in contrast to the commercial radio model in existence between 1973 and 1990, where local stations were required, as part of their contract, to broadcast speech-based programming, in addition to music, to a wider audience profile. One reason for speech programming on commercial stations was the strict regulation laid down by the Independent Broadcasting Authority (IBA). Regulatory policy coupled with societal and political changes had a major influence on the creation of programme output from 1973, when commercial radio was established, until new broadcast legislation was passed which transformed the business model under the Broadcasting Act 1990. Programme content was constrained by the regulator’s demands for what they referred to as ‘meaningful speech’ and the stations’ desire to be more commercial in line with the demands of the audience. The intention of this research project is to explore the impact of regulation upon the commercial radio programming model between 1983-85, and to uncover why this period was pivotal in bringing about change within the regulatory framework. This examination will be carried out by drawing on IBA policy papers, media reports and personal accounts from interviews with key radio station personnel, such as broadcasters, station producers, managers and regulation staff. The project draws on original sources of both primary and secondary data, including information held in the archives of the current radio regulator, the Office of Communications (Ofcom), who has granted unlimited access to previously unseen confidential archives. This provides an exclusive data source allowing the research to make an original contribution to broadcasting history, which is pertinent given the current debate on deregulation within UK commercial radio. 5 1. Introduction and Background British Commercial Radio is a network of licensed local, regional and national radio stations which broadcast on FM, AM and DAB frequencies. Following the parliamentary approval of the Sound Broadcasting Act in 1972, it was introduced in October 1973, establishing its position as the only alternative service to the BBC. Today there are over three hundred commercial local, regional and national radio stations (not counting community and internet stations). A main focus of today’s commercial model is to achieve profits, using sophisticated advertising, marketing and branding concepts linked to on-air (and online) content. The stations are managed strategically, mostly by large companies, focusing on sales and marketing objectives, with equal or more value being placed on the importance of revenue targets as well as listener ratings. This is in contrast to the structure, sound and production of local commercial radio (there was no national station until after 1990) in the period 1973-90 which was heavily regulated by the Independent Broadcasting Authority (IBA). The IBA had clear policies dictating every aspect of radio station business. These included ownership and licensing rules that meant that each individual station was franchised to a stand-alone company. The IBA implemented limitations to advertising and sponsorship, engineering specifications, and programme content, notably limits on the amount of music that could be played due to copyright restrictions and a high stipulation for local news. The new service was referred to as Independent Local Radio (ILR). When new legislation, the Broadcasting Act 1990, was passed, it changed the nature of programme regulation to a less restrictive, free market model, referred to by Hendy as ‘open market’ regulation (2000: 41). The actions and events of the regulator and the radio stations, leading up to the change in legislation, were most prominent during the mid-1980s, a period Street (2002) and Stoller (2006) regard as highly significant. These events not only changed the business model at the beginning of the 1990s, but their legacy continues to effect regulatory change. 6 Defining 1984 as the pivotal moment In personal interviews conducted during the initial phase of the research, both Stoller and Street strongly suggested that 1984 was the pivotal moment in the history of commercial radio 1, which confirms anecdotal evidence from this author, based on their own experiences working within the industry. Research for this thesis confirms that 1984 appears to be a unique and important date because it was during this time that a significant event occurred. The event was a secret meeting of commercial radio station directors, without the involvement of the IBA, at which the traditional form of radio programme regulation that had been in existence for ten years was challenged. The actions of this meeting had major repercussions for the future of the radio industry and the thesis shall demonstrate the extent of the changes incurred. Moreover, when researching this period to test the validity of Street and Stoller’s claim, it is clear that one cannot separate it from the turbulent events occurring within the UK economy. These appear to have exacerbated the strain on the model of regulation practiced by the IBA, given the influence of economic turmoil, social change and media fragmentation. In addition, the influence of the Conservative Government, under the leadership of Margaret Thatcher from 1979-90, and the findings of the 1986 Peacock Report, instigated new legislation. The Broadcasting Act 1990, as the thesis shall demonstrate, revealed key characteristics of Thatcherism. This is because it focused on the removal of restrictions upon commercial operators (radio and television) thus supporting the ideology of the free market. As the thesis shall confirm from qualitative research, 1984 appears to have not only been a definitive point on the commercial radio continuum from the radio stations’ perspective, but also to have changed the role of the regulator from interventionist to ‘light-touch’. This can be analysed further by applying mass communication theory (McQuail, 2005). The IBA’s regulatory approach moved from a hypodermic model, to a uses and gratifications model thus creating a shift in the balance within the public sphere, where listeners, in addition, became consumers. Research aims and objectives The aim of the thesis is to examine commercial radio programming regulation, from its genesis in 1973, to the legislative changes which took place in 1990, focusing on the mid-1980s. The research project is designed, at a simplistic level, to document 1 In personal interviews conducted in 2006 prior to the commencement of the thesis, both Stoller and Street outlined 1984 as a critical stage in ILR’s development. 7 commercial radio’s contribution to the broadcasting sector, while affording the opportunity to provide detailed discussion and analysis of its manifestations during the first ten years.
Recommended publications
  • The Regulation of Commercial Radio Broadcasting in the United Kingdom
    NORTH CAROLINA JOURNAL OF INTERNATIONAL LAW Volume 14 Number 2 Article 5 Spring 1989 The Regulation of Commercial Radio Broadcasting in the United Kingdom Timothy H. Jones Follow this and additional works at: https://scholarship.law.unc.edu/ncilj Part of the Commercial Law Commons, and the International Law Commons Recommended Citation Timothy H. Jones, The Regulation of Commercial Radio Broadcasting in the United Kingdom, 14 N.C. J. INT'L L. 255 (1989). Available at: https://scholarship.law.unc.edu/ncilj/vol14/iss2/5 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Journal of International Law by an authorized editor of Carolina Law Scholarship Repository. For more information, please contact [email protected]. The Regulation of Commercial Radio Broadcasting in the United Kingdom Timothy H. Jones* The regulation of commercial radio broadcasting in the United Kingdom is about to enter a period of rapid change. The Govern- ment is committed to increasing the number of commercial radio sta- tions and to a measure of deregulation. Legislation to effect these changes is expected in the near future. Up to the present time, an independent agency, the Independent Broadcasting Authority (IBA or Authority), has strictly regulated commercial radio broadcasting.' Commercial radio services have been restricted to those of a "local" character.2 This regulation of Independent Local Radio (ILR) is generally regarded to have been a failure, and the IBA's effectiveness as a regulatory agency has been called into question on numerous occasions.
    [Show full text]
  • Reuters Institute: the Future of Voice and the Implications for News
    DIGITAL NEWS PROJECT NOVEMBER 2018 The Future of Voice and the Implications for News Nic Newman Contents About the Author 4 Acknowledgements 4 Executive Summary 5 1. Methodology and Approach 8 2. What is Voice? 10 3. How Voice is Being Used Today 14 4. News Usage in Detail 23 5. Publisher Strategies and Monetisation 32 6. Future Developments and Conclusions 40 References 43 Appendix: List of Interviewees 44 THE REUTERS INSTITUTE FOR THE STUDY OF JOURNALISM About the Author Nic Newman is Senior Research Associate at the Reuters Institute and lead author of the Digital News Report, as well as an annual study looking at trends in technology and journalism. He is also a consultant on digital media, working actively with news companies on product, audience, and business strategies for digital transition. Acknowledgements The author is particularly grateful to media companies and experts for giving their time to share insights for this report in such an enthusiastic and open way. Particular thanks, also, to Peter Stewart for his early encouragement and for his extremely informative daily Alexa ‘flash briefings’ on the ever changing voice scene. The author is also grateful to Differentology andY ouGov for the professionalism with which they carried out the qualitative and quantitative research respectively and for the flexibility in accommodating our complex and often changing requirements. The research team at the Reuters Institute provided valuable advice on methodology and content and the author is grateful to Lucas Graves and Rasmus Kleis Nielsen for their constructive and thoughtful comments on the manuscript. Also thanks to Alex Reid at the Reuters Institute for keeping the publication on track at all times.
    [Show full text]
  • Hans Knot International Radio Report July/August 2017
    Hans Knot International Radio Report July/August 2017 Welcome to another issue of the International Radio Report and like every summer it will be one for the month of July and August. Thanks for the many response on last issue as well as memories and photos have been sent in for this and further issues. Enjoy the report! Sadly we have to start with bad news. May the 30th the following sad news came in from Mark Sloane (Pat Hammerton) ‘Sorry to report Hans my dear chum David Gilbee, Dave Mackay, died this weekend. He and I met on Radio 390 and worked together on 355. He was also my brother in law, marrying my sister Lis.’ Dave MacKay Radio 355 Photo: collection Pirate Hall of Fame I’m very sorry to hear this sad news Pat. Of course you know him far much better than I do. I met him on a handful of occasions and was in contact with him by e-mail through the years. Of course he was on special Radio Reunions a few times in England where we met during the last 20 years. But our very first meeting was one, were we sometimes talked about. It was a very special day just after the official opening of Melody Radio in London. I was there for a special for our magazine and he told me all about the station, the style of presentation but above all how much of the music was transferred to a machine which was just put into the market. It was Dave who brought me to the idea to do the same with my vinyl collection.
    [Show full text]
  • Zuckerberg Inks Video Calls Deal with Skype
    BUSINESS WITH PERSONALITY HAVE AN ALE ZUCKERBERG INKS VIDEO OF A TIME CALLS DEAL WITH SKYPE ARTISAN BEER COMES TO THE A FIRST FOR FACEBOOK PAGE 3 CITY PAGE 22 Issue 1,419 Thursday 7 July 2011 www.cityam.com FREE Chancellor NEWS CORP FEARS on hacking target list ▲ MEDIA DELAY TO SKY BID BY STEVE DINNEEN CHANCELLOR George Osborne yester- ▲ MEDIA ANALYSIS l British Sky Broadcasting Group PLC day joined the unenviable roll-call of BY STEVE DINNEEN p 827.00 people targeted by News of the World 850 6 Jul phone hackers. NEWS Corp bosses yesterday feared 845 Police visited Osborne last night to they may be forced to delay the firm’s 840 tell him that his personal details multi billion pound bid for BSkyB, as 835 appeared on notes kept by convicted the toxic political and commercial fall- 830 criminal Glenn Mulcaire and shamed out of the phone hacking scandal con- 825 former News of the World royal editor tinued to gather pace. 820 Clive Goodman. Bankers close to the deal told City It is not clear if Osborne’s name 30 Jun 1 Jul 4 Jul 5 Jul 6 Jul A.M. that negotiations have ground to and number were added to the list a halt while both sides consider the before or after he became chancellor. effects the ongoing scandal could have ANALYSIS l News Corp A spokesman for the Osborne said: on the proposed takeover. Even if the $ 17.94 “George was very grateful to the 6 Jul bid is waved through by the govern- 18.50 police.
    [Show full text]
  • Sweet at Top of the Pops
    1-4-71: Presenter: Tony Blackburn (Wiped) THE SWEET – Funny Funny ELVIS PRESLEY – There Goes My Everything (video) JIMMY RUFFIN – Let’s Say Goodbye Tomorrow CLODAGH RODGERS – Jack In The Box (video) FAME & PRICE TOGETHER – Rosetta CCS – Walkin’ (video) (danced to by Pan’s People) THE FANTASTICS – Something Old, Something New (crowd dancing) (and charts) YES – Yours Is No Disgrace T-REX – Hot Love ® HOT CHOCOLATE – You Could Have Been A Lady (crowd dancing) (and credits) ........................................................................................................................................................ THIS EDITION OF TOTP IS NO LONGER IN THE BBC ARCHIVE, HOWEVER THE DAY BEFORE THE BAND RECORDED A SHOW FOR TOPPOP AT BELLEVIEW STUDIOS IN AMSTERDAM, WEARING THE SAME STAGE OUTFITS THAT THEY HAD EARLIER WORN ON “LIFT OFF”, AND THAT THEY WOULD WEAR THE FOLLOWING DAY ON TOTP. THIS IS THE EARLIEST PICTURE I HAVE OF A TV APPEARANCE. 8-4-71: Presenter: Jimmy Savile (Wiped) THE SWEET – Funny Funny ANDY WILLIAMS – (Where Do I Begin) Love Story (video) RAY STEVENS – Bridget The Midget DAVE & ANSIL COLLINS – Double Barrel (video) PENTANGLE – Light Flight JOHN LENNON & THE PLASTIC ONO BAND – Power To The People (crowd dancing) (and charts) SEALS & CROFT – Ridin’ Thumb YVONNE ELLIMAN, MURRAY HEAD & THE TRINIDAD SINGERS – Everything's All Right YVONNE ELLIMAN, MURRAY HEAD & THE TRINIDAD SINGERS – Superstar T-REX – Hot Love ® DIANA ROSS – Remember Me (crowd dancing) (and credits) .........................................................................................................................................................
    [Show full text]
  • Hans Knot International Radio Report December 2015 Welcome to This
    Hans Knot International Radio Report December 2015 Welcome to this edition of the radio report and thanks for all the e mails with memories and more, which is most appreciated. Also this time there is a variety of subjects and so let’s start with the first one: Recently I was linked through to a message board where several people are exchanging memories and more. One of them was Terry Davis, which we know from offshore stations like Radio Atlantis and RNI. I added a memory by saying that Terry should also be remembered for his excellent ‘Beatles songs’ which were aired a lot on Radio Atlantis. Later he also worked together with Steve England in the jingle companies Tapetrix and Alfa Sounds. Well Terry sent some nice pictures from his Atlantis days in 1974. The first one is a photo from the bridge of the radioship, which was anchored in international waters off the Belgium coast in those days. The second one shows Steve England, Debbie and John Harding and a fourth person at the background which cannot be remembered by me. And finally here is a photo of the deck-hands Dean and Raffle, who were mentioned in the programs from the international service on Radio Atlantis. A regular in the report and friend since we met for the very first time in 1970 is Paul de Haan. On Saturdays I’m galley man - as I don’t want to name myself cook – on board the minesweeper ‘de Naarden’ in Delfzijl. Working there is also a machinist who was working with Dutch Marine in the seventies of last century.
    [Show full text]
  • Pocketbook for You, in Any Print Style: Including Updated and Filtered Data, However You Want It
    Hello Since 1994, Media UK - www.mediauk.com - has contained a full media directory. We now contain media news from over 50 sources, RAJAR and playlist information, the industry's widest selection of radio jobs, and much more - and it's all free. From our directory, we're proud to be able to produce a new edition of the Radio Pocket Book. We've based this on the Radio Authority version that was available when we launched 17 years ago. We hope you find it useful. Enjoy this return of an old favourite: and set mediauk.com on your browser favourites list. James Cridland Managing Director Media UK First published in Great Britain in September 2011 Copyright © 1994-2011 Not At All Bad Ltd. All Rights Reserved. mediauk.com/terms This edition produced October 18, 2011 Set in Book Antiqua Printed on dead trees Published by Not At All Bad Ltd (t/a Media UK) Registered in England, No 6312072 Registered Office (not for correspondence): 96a Curtain Road, London EC2A 3AA 020 7100 1811 [email protected] @mediauk www.mediauk.com Foreword In 1975, when I was 13, I wrote to the IBA to ask for a copy of their latest publication grandly titled Transmitting stations: a Pocket Guide. The year before I had listened with excitement to the launch of our local commercial station, Liverpool's Radio City, and wanted to find out what other stations I might be able to pick up. In those days the Guide covered TV as well as radio, which could only manage to fill two pages – but then there were only 19 “ILR” stations.
    [Show full text]
  • BBC Oral History Collection, Transcript, Robin Scott
    ORAL HISTORY OF THE BBC: ROBIN SC INTERVIEWED BY FRANK GILLARD. SECOND SESSION RECORDED IN BROADCASTING HOUSE, LONDON, 14th January 1981. GILLARD: Let's move on now to the period you spent, quite a brief period really but a very important one, in Radio in the second half of the sixties, when you became Controller Radio 1 8 2. Tell us first of all how the job came to you and forget that I'm here. SCOTT: I had after some three years, three and a half years or so, back with Television Outside Broadcasts, I'd become, not discontented with the job I was doing, but really felt that if I was to realise what I believed to be my potential I should look for an executive position somewhere in the BBC. And thought well why not go back to my first love which was after all Radio, and so I applied for the job of assistant head of Gramophone Department in Broadcasting House. Working therefore to Anna Instone who was Head of the Department for many years, a great many. And I duly applied for this job although it was not at a grade above my own, in fact I don't think it certainly didn't produce any more money, but I wanted in fact to get onto the rung of a different ladder, possibly. I also wanted to get into domestic radio broadcasting which I'd really only contributed programmes to but never enjoyed any kind of executive position, or producer position, having always in radio worked at Bush House.
    [Show full text]
  • NATIONAL LIFE STORIES CITY LIVES Sir Roger Gibbs Interviewed
    NATIONAL LIFE STORIES CITY LIVES Sir Roger Gibbs Interviewed by Cathy Courtney C409/086 This interview and transcript is accessible via http://sounds.bl.uk. © The British Library Board. Please refer to the Oral History curators at the British Library prior to any publication or broadcast from this document. Oral History The British Library 96 Euston Road London NW1 2DB United Kingdom +44 (0)20 7412 7404 [email protected] Every effort is made to ensure the accuracy of this transcript, however no transcript is an exact translation of the spoken word, and this document is intended to be a guide to the original recording, not replace it. Should you find any errors please inform the Oral History curators. THE NATIONAL LIFE STORY COLLECTION NTERVIEW SUMMARY SHEET Title Page ____________________________________________________________________ Ref. No.: C409/86 Playback No.: F3119-F3127; F5223-F5226; F9681-F9683; F12013-F12016 ____________________________________________________________________ Collection title: City Lives ____________________________________________________________________ Interviewee’s surname: Gibbs Title: Sir Interviewee’s forenames: Roger Date of birth: 13th October 1934 Sex: Male ____________________________________________________________________ Date(s) of recording: 21.01.1992; 04.11.1992; 03.02.1993; 20.04.1993; 15.11.1995; 19.04.2001; 11.10.2002 Location of interview: Interviewee’s home and British Library Name of interviewer: Cathy Courtney Type of recorder: Marantz Total no. of tapes: 20 (interview incomplete) Type of tape: Mono or stereo: Speed: Noise reduction: Original or copy: ____________________________________________________________________ Additional material: ____________________________________________________________________ Copyright/Clearance: © British Library ____________________________________________________________________ Interviewer’s comments: Re Tapes 17-20 (F12013-F12016). I had an arrangement to go for two hours and in fact recorded for four hours.
    [Show full text]
  • Review of BBC Local Radio Report Prepared for BBC Management
    Review of BBC Local Radio Report prepared for BBC Management John Myers February, 2012 Myers review of BBC Local Radio - January 2012 Preface In November 2011, I was asked by BBC management to review the operations of BBC Local Radio. The brief was to examine the working practices of the local radio network, to investigate areas of possible savings without impacting the on-air performance and review the current levels of management and back office staff. This work was conducted over a short period of time and therefore my findings can only be considered to be an overview. Furthermore, this is my personal opinion based on what I have learned and is certainly not meant to be a detailed cost analysis of each station or the network as a whole which would require extensive and detailed work to be carried out over a longer period of time. In addition, the savings are approximate totals and are not meant to be precise. While my task was not to review content specifically, I did so if I felt it impacted on the cost of running local radio or where it provides context, colour or background to a particular point. Where practical, I have offered a solution to any issues uncovered if it is not contained within my main findings and recommendations. The review was carried out between the 11th November and the 9th December respectively and nine stations were visited within the network portfolio. These were Cumbria, Essex, Merseyside, Shropshire, Nottingham, Tees, Manchester, Oxford and BBC Sussex and Surrey. I was assisted in this task by the BBC‟s Policy and Strategy team.
    [Show full text]
  • The Grand Valley Ledger Wny La
    €iNe w TV Magazine Hi1 n00;: In This Issue'* Hi,,, -» ^ n i • k . Complete Listings For 'the - . ai:•' Lowell Cable TV System 4 49204 0 l« Scat ri of The Grand Valley Ledger wny lA Volume 7, Issue 21 Serving Lowell Area jgf Reader* Since 1893March 30. 1983 Teachers and Board come to terms on contract After months of sometimes to them by contract paid in equal payment of from 16 to 30 percent blame already-high taxes and as- would be willing to see the bus- grams they were willing to sup- tense negotiations, the Lowell installments until the last pay of the retiree's regular teaching sessments for the March 14 mil- ing program discontinued for the port with a favorable millage MBS Hducation Association and the date of the 1982-83 school year. salary lage defeat more than anything sake of improved instructional vote. The survey listed busing, a Bill Lowell Board of Education In addition, teachers will re- In a special meeting of the else. Fifty-one percent of the re- programs This figure compares six-hour school day. extra-cur- Wednesday ratified a three-year ceive salary increases of 6 per- board held Wednesday, March spondents said that taxes were with 41 percent for non-parents ncular activities, buildings and contract agreement which gives cent for the 1983-84 school year, 23, High School Assistant Prin- the reason for the millage defeat, These results were significant grounds improvements, and in- teachers the retroactive pay in- and 6-1/2 percent for the year cipal Dick Korb explained the re- compared with 20 percent who to Korb because they seemed to structional improvements.
    [Show full text]
  • Completed Acquisition by Global Radio Uk Ltd of Gcap Media Plc
    COMPLETED ACQUISITION BY GLOBAL RADIO UK LTD OF GCAP MEDIA PLC UNDERTAKINGS TO BE GIVEN BY GLOBAL RADIO UK LTD TO THE OFFICE OF FAIR TRADING PURSUANT TO SECTION 73 OF THE ENTERPRISE ACT 2002 WHEREAS: (a) On 6 June 2008 Global acquired GCAP; (b) It appears to the OFT that, as a consequence of that transaction, a relevant merger situation has been created in the UK; (c) The OFT has a duty to refer a completed merger to the CC for further investigation where it believes that it is or may be the case that the creation of that merger situation has resulted or may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services; (d) Under section 73 of the Act the OFT may, instead of making such a reference and for the purpose of remedying, mitigating or preventing the substantial lessening of competition concerned or any adverse effect which may be expected to result from it, accept undertakings to take such action as it considers appropriate, from such of the parties concerned as it considers appropriate, in particular having regard to the need to achieve as comprehensive a solution as is reasonable and practicable to the substantial lessening of competition and any adverse effects resulting from it; (e) The OFT considers that, in the absence of appropriate undertakings, it would be under a duty to refer the acquisition of GCAP to the CC; and (f) The OFT further considers that the undertakings given below by Global are appropriate to remedy, mitigate or prevent the substantial lessening of competition, or any adverse effect which has or may have resulted from it, or may be expected to result from it, as specified in the Decision.
    [Show full text]