DOCSLIB.ORG

21St Century Fox / Sky Merger Inquiry: Issues Statement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
21St Century Fox / Sky Merger Inquiry: Issues Statement ANTICIPATED ACQUISITION BY 21st CENTURY FOX, INC OF SKY PLC Issues statement 10 October 2017 Introduction 1. Following a reference by the Secretary of State for Digital, Culture, Media and Sport (Secretary of State), the Competition and Markets Authority (CMA) is investigating the impact on media plurality and broadcasting standards of the proposed acquisition by 21st Century Fox, Inc (Fox) of the shares of Sky plc (Sky) that it does not already own (the Transaction).1 Fox proposes to increase its share ownership from approximately 39% to 100%. 2. We are publishing this issues statement to help any parties submitting evidence to focus on the issues we expect will be relevant to our inquiry. We set out the main issues relating to plurality and broadcasting standards which we are likely to consider in reaching our decision, having had regard to the evidence available to us, including the evidence set out in the Competition and Markets Authority’s phase 1 report,2 the Ofcom report,3 the Secretary of State’s letters to the Parties of 12 September and 20 September 2017, the Parties’ submissions and responses to the Secretary of State, the Parties’ initial submissions to the CMA, and third party submissions to Ofcom and DCMS. Assessment of impact on media plurality 3. With respect to media plurality the CMA is assessing whether there will be a sufficient plurality of persons with control of the media enterprises serving audiences in the UK following the Transaction. We are therefore looking for 1 Throughout this document, where appropriate, we refer to Fox and Sky collectively as ‘the Parties’. 2 CMA, A report to the Secretary of State for Culture, Media and Sport in response to the European intervention notice issued on 16 March 2017 in relation to the anticipated acquisition by 21st Century Fox, Inc of Sky plc (20 June 2017). 3 Ofcom, Public interest test for the proposed acquisition of Sky plc by 21st Century Fox, Inc (20 June 2017). We have also had regard to the advice provided by Ofcom to the Secretary of State on 25 August 2017 and 4 September following letters from the Secretary of State on 7 August 2017 and 31 August 2017. 1 views and evidence on the current level of media plurality in the UK, whether and the extent to which the Transaction reduces that level of media plurality, and whether the remaining level of plurality of persons with control of media enterprises would be sufficient. We will consider these issues in the context of Ofcom’s definition of media plurality: ensuring diversity of viewpoints that are available and consumed; and preventing any one media owner or voice having too much influence over public opinion and the political agenda. We therefore particularly welcome views and evidence that address: • whether and how the ability of the Murdoch Family Trust (MFT) to control or influence editorial and commercial decisions at Sky News will change as a result of Fox’s share ownership of Sky increasing from approximately 39% to 100% and whether that change is material in nature; • whether and how the range of viewpoints available from news and current affairs sources in the UK is evolving in general and would change in particular as a result of the Transaction; • how people consume news and current affairs and the extent to which they rely on multiple sources and how this is likely to change in future; • the impact and importance of different news and current affairs sources, including online and through social media, for media plurality and, in turn, the implications of the impact of online and social media on the use of traditional (ie broadcast and print) news and current affairs sources by consumers; • whether and how the ability of the MFT to influence the political agenda will change as a result of the Transaction; • the level of media plurality in the UK that should be considered sufficient; • whether and how the Transaction would result in an insufficient level of media plurality in the UK, taking into account the increase in the level of control held by the MFT over Sky following the Transaction and its existing control over Fox and News Corporation (News Corp); and • any existing factors which might help to prevent or reduce any potential negative effects of the Transaction on media plurality. Assessment of impact on broadcasting standards 4. With respect to broadcasting standards the CMA is looking for views and evidence on whether the merged entity post-Transaction will have a genuine commitment to broadcasting standards objectives. In assessing this, we will 2 consider the record of the Parties’ compliance with broadcasting and other applicable regulations, and their broader attitude to compliance in general. We therefore in particular welcome views and evidence on: • the current approach of Fox, Sky, the MFT and News Corp to compliance with broadcasting standards; • the approach of Fox, Sky, the MFT and News Corp to effective corporate governance and other applicable regulations, including regulations relating to the treatment of employees, in the UK and overseas; • the degree to which compliance with other applicable regulations, and effective corporate governance more generally should be considered in assessing a company’s commitment to broadcasting standards, including whether and which particular regulations may be considered more relevant to this assessment; • what constitutes a genuine commitment to broadcasting standards and whether, and if so, how the Transaction might lead to the merged entity lacking a genuine commitment to broadcasting standards; and • any existing factors which might help to prevent or reduce potential negative effects of the Transaction on the merged entity’s commitment to broadcasting standards. 5. We invite interested parties to notify us if there are any additional relevant issues which they believe we should consider in relation to the media plurality and broadcasting standards considerations. If any such further issues were to arise about which the Group would wish to hear evidence from the Parties, then both the Parties and the wider public will be informed and given an opportunity to comment. 6. Any party wishing to provide evidence in response to this statement of issues should do so in writing, by no later than 5pm on Tuesday 24 October 2017. Please email [email protected] or write to: Project Manager Fox/Sky merger inquiry Competition and Markets Authority Victoria House Southampton Row London WC1B 4AD 3 The reference 7. On 20 September 2017, the Secretary of State, in exercise of her powers under article 5 of the Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 (the Order), referred the Transaction to the CMA for further investigation and report by a group of CMA panel members (the Inquiry Group). 8. In exercise of its duty under article 6 of the Order, the CMA must decide: (a) whether arrangements are in progress or in contemplation which, if carried into effect will result in the creation of a European relevant merger situation;4 and if so (b) whether, taking account only of the admissible public interest consideration or considerations concerned, the creation of that situation may be expected to operate against the public interest;5 and if so (c) whether (and if so what) action should be taken by the Secretary of State for the purpose of remedying, mitigating or preventing any of the effects adverse to the public interest which may be expected to result from the creation of the European relevant merger situation concerned.6 9. The admissible public interest considerations referred to in paragraph 8(b) above are: • ‘the need in relation to every different audience in the UK or in a particular area or locality of the UK, for there to be a sufficient plurality of persons with control of the media enterprises serving that audience’ (the media plurality consideration) as set out in section 58(2C)(a) of the Enterprise Act 2002 (the Act); and • ‘the need for persons carrying on media enterprises, and for those with control of such enterprises, to have a genuine commitment to the attainment in relation to broadcasting of the standards objectives set out in section 319 of the Communications Act 2003’ (the broadcasting standards consideration) as set out in section 58(2C)(c) of the Act. 4 Article 6(2) of the Order. ‘European relevant merger situation’ is defined in section 68 of the Act. 5 Article 6(3) of the Order. As set out in Article 6(5) of the Order, ‘admissible public interest consideration’ means any such consideration ‘specified in the reference under article 5 and which the CMA is not under a duty to disregard’. 6 Article 6(4) of the Order. The Group is also to consider whether it should recommend the taking of other action by the Secretary of State or action by persons other than itself and the Secretary of State for the purpose of remedying, mitigating or preventing any of the effects adverse to the public interest which have resulted from, or may be expected to result from, the creation of the European relevant merger situation concerned. 4 10. As the Transaction falls for consideration under the EU Merger Regulation,7 the competition aspects of the Transaction were investigated by the European Commission, which cleared the Transaction on 7 April 2017.8 The CMA is therefore not looking at competition issues that may arise from the Transaction. 11. It is ultimately for the Secretary of State, under Article 12(2) of the Order, to decide the questions set out in the Terms of Reference following receipt of the CMA’s report. However, in doing so, the Secretary of State must accept the CMA’s decision on whether the Transaction amounts to a European relevant merger situation9 and have regard to the CMA’s report when making her decision about what action she may take to remedy any finding that the pro- posed Transaction may be expected to operate against the public interest.10 Background The Parties Fox 12.
Load more

Recommended publications
  • Response to the Government Consultation on the Leveson Inquiry and Its Implementation
    Response to the Government Consultation on the Leveson Inquiry and its Implementation Contents Executive Summary ................................................................................................... 2 The commencement of section 40 ............................................................................. 4 Option (a): Government should not commence any of section 40 now, but keep it under review and on the statute book ..................................................................... 4 Option (b): Government should fully commence section 40 now ............................ 5 Option (c): Government should ask Parliament to repeal all of section 40 now ...... 8 Option (d): Government should partially commence section 40, and keep under review those elements that apply to publishers outside a recognised regulator ... 10 Option (e): Government should partially commence section 40, and ask Parliament to repeal those elements that apply to publishers outside a recognised regulator 11 The impact of section 40 .......................................................................................... 13 The impact of section 40 on the press industry .................................................... 13 The impact of section 40 on claimants .................................................................. 19 The purpose of section 40 ........................................................................................ 22 Part 2 of the Leveson Inquiry ..................................................................................
    [Show full text]
  • The Leveson Inquiry Into the Cultures, Practices And
    For Distribution to CPs THE LEVESON INQUIRY INTO THE CULTURES, PRACTICES AND ETHICS OE THE PRESS WITNESS STATEMENT OE JAMES HANNING I, JAMES HANNING of Independent Print Limited, 2 Derry Street, London, W8 SHF, WILL SAY; My name is James Hanning. I am deputy editor of the Independent on Sunday and, with Francis Elliott of The Times, co-author of a biography of David Cameron. In the course of co-writing and updating our book we spoke to a large number of people, but equally I am very conscious that I, at least, dipped into areas in which I can claim very little specialist knowledge, so I would emphasise that in several respects there are a great many people better placed to comment and much of what follows is impressionistic. I hope that what follows is germane to some of the relationships that Lord Justice Leveson has asked witnesses to discuss. I hesitate to try to draw a broader picture, but I hope that some conclusions about the disproportionate influence of a particular sector of the media can be drawn from my experience. My interest in the area under discussion in the Third Module stems from two topics. One is in David Cameron, on whose biography we began work in late 2005, soon after Cameron became Tory leader. The second is an interest in phone hacking at the News of the World. Tory relations with Murdoch Since early 2007, the Conservative leadership has been extremely keen to ingratiate itself with the Murdoch empire. It is striking how it had become axiomatic that the support of the Murdoch papers was essential for winning a general election.
    [Show full text]
  • For Parties to Merger
    Karen Bradley MP Secretary of State for Culture, Media and Sport Dear Secretary of State, The National Union of Journalists (NUJ) notes your statement of 3 March 2017 inviting suBmissions in relation to the proposeD full merger of 21st Century Fox Inc anD Sky plc. We welcome your statement of the same Date that you are minDeD to issue a European Intervention Notice on the Basis there may Be puBlic interest concerns, as set out in the Enterprise Act 2002, which warrant further consiDeration. The NUJ strongly supports an investigation By Ofcom into the proposeD merger, which poses a significant threat to meDia plurality anD Broadcasting stanDarDs. We Believe the merger woulD undermine the puBlic interest anD that referral for investigation unDer Section 58 of the Enterprise Act 2002 is essential. The NUJ is the voice for journalism anD for journalists across the UK anD IrelanD. It was founDeD in 1907 anD has 30,000 memBers. We are an affiliate of Both the European FeDeration of Journalists anD the International FeDeration of Journalists (IFJ). We represent journalists working at home anD abroad in all sectors of the meDia, incluDing staff, stuDents anD freelances – writers, reporters, eDitors, suB-eDitors, photographers, illustrators anD people who work in puBlic relations. As a union we have a strong commitment to the concept of meDia Diversity. Any inDiviDual, family or company which Dominates the meDia lanDscape is funDamentally Damaging to Democracy. In examining the proposeD merger, Ofcom woulD have to consiDer the already unsatisfactory situation prevailing in the UK, where the provision of radio anD television news is restricteD to the BBC anD two Dominant players in the commercial sector.
    [Show full text]
  • Hacking Affair Is Not Over – but What Would a Second Leveson Inquiry Achieve?
    7/10/2019 Hacking affair is not over – but what would a second Leveson inquiry achieve? Academic rigour, journalistic flair Hacking affair is not over – but what would a second Leveson inquiry achieve? July 25, 2014 3.57pm BST Author John Jewell Director of Undergraduate Studies, School of Journalism, Media and Cultural Studies, Cardiff University On we go. Ian Nicholson/PA In the latest episode in the long-running saga that is the phone hacking affair, Dan Evans, a former journalist at the News of the World and Sunday Mirror, has received a 10 month suspended sentence after being convicted of two counts of phone hacking, one of making illegal payments to officials, and one of perverting the course of justice. Coming so soon after the conviction of Andy Coulson and the acquittal of Rebekah Brooks and others, one could be forgiven for assuming that the whole phone hacking business is now done and dusted. Not a bit of it. As Julian Petley has written: “Eleven more trials are due to take place involving 20 current or former Sun and News of the World journalists, who are accused variously of making illegal payments to public officials, conspiring to intercept voicemail and accessing data on stolen mobile phones.” We also learned in June that Scotland Yard had officially told Rupert Murdoch of their intention to interview him as part of their inquiry into allegations of crime at his British newspapers. The Guardian revealed that Murdoch was first contacted in 2013, but the police ceded to his lawyers’ request that any interrogation should wait until the Coulson–Brooks trial had finished.
    [Show full text]
  • A Better Death in a Digital Age: Post
    Publishing Office Aims and scope Abramis Academic ASK House Communication ethics is a discipline that supports communication Northgate Avenue practitioners by offering tools and analyses for the understanding of Bury St. Edmunds ethical issues. Moreover, the speed of change in the dynamic information Suffolk environment presents new challenges, especially for communication IP32 6BB practitioners. UK Tel: +44 (0)1284 700321 Ethics used to be a specialist subject situated within schools of philosophy. Fax: +44 (0)1284 717889 Today it is viewed as a language and systematic thought process available Email: [email protected] to everyone. It encompasses issues of care and trust, social responsibility and Web: www.abramis.co.uk environmental concern and identifies the values necessary to balance the demands of performance today with responsibilities tomorrow. Copyright All rights reserved. No part For busy professionals, CE is a powerful learning and teaching approach that of this publication may be reproduced in any mate- encourages analysis and engagement with many constituencies, enhancing rial form (including pho- relationships through open-thinking. It can be used to improve organization tocopying or storing it in performance as well as to protect individual well-being. any medium by electronic means, and whether or not transiently or incidentally Submissions to some other use of this Papers should be submitted to the Editor via email. Full details on submission – publication) without the along with detailed notes for authors – are available online in PDF format: written permission of the www.communication-ethics.net copyright owner, except in accordance with the provisions of the Copyright, Subscription Information Designs and Patents Act Each volume contains 4 issues, issued quarterly.
    [Show full text]
  • United Kingdom
    Sousa, H., Trützschler, W., Fidalgo, J. & Lameiras, M. (eds.) (2013) Media Regulators in Europe: A Cross-Country Comparative Analysis Braga: CECS, University of Minho ISBN: 978-989-97244-7-1 pp. 180 -191 United Kingdom ALESSANDRO D’ARMA Communication and Media Research Institute CAMRI, University of Westminster [email protected] 1. LEGAL FRAMEWORK The main media and communications regulatory body in the UK is the Office of Communications (Ofcom), with offices in London. Ofcom is a statutory body, organizationally separated from government and operating at arm’s length from it, created by the Office of Communications Act 20021. Its main powers and functions were conferred on it by the Communications Act 20032, which sets out no less than 263 separate statutory duties3. Ofcom is accountable to Parliament to which it reports on its activities annually. As will be detailed below, Ofcom has regulatory duties across most of the ‘converging’ electronic communications sector, often in an advisory capacity to government in areas such as media ownership rules and public service broadcasting, and is in charge of implementing and enforcing legislation. Other Acts of Parliament under which Ofcom operates include the Broadcasting Acts 19904 and 19965, the Human Rights Act 19986, the Enterprise Act 20027, the Wireless Telegraphy Act 20068, and the Digital Economy Act 20109. There are other governmental and non-governmental bodies that have powers and duties in relation to media and communications matters. The two main government depart- ments with policy responsibilities over media and communications are the Department for Culture, Media and Sport (DCMS) and the Department for Business, Innovation and Skills (BIS).
    [Show full text]
  • Whittingdale and the Ex-Dominatrix: Conspiracy of Silence Or
    Whittingdale and the ex-dominatrix: conspiracy of silence or provided by LSE Research Online View metadata, citation and similar papers at core.ac.uk CORE goobrought to you by d press behaviour? blogs.lse.ac.uk/polis/2016/04/13/whittingdale-and-the-ex-dominatrix-conspiracy-of-silence-or-good-press- behaviour/ 2016-4-13 This is the original version of an article that appeared in Newsweek on 13.4.16. The John Whittingdale ‘dominatrix’ story is a classic case study of the eternal balancing act between the right to privacy and the public interest in disclosure. In practice this is rarely a purely ethical or editorial decision. Inevitably, legal, political and taste issues will come into play. The circumstantial details are vital. Yes, ‘publish and be damned’ but in a country without a First Amendment, there has to be a justification. In the highly competitive UK newspaper market editors hate to spike juicy tales of politicians and former sex workers. Yet, in the febrile debate over British journalism that has followed the Leveson inquiry into phone-hacking we find ourselves in the intriguing situation where the advocates of restraint, such as the pro-regulation campaigners at Hacked Off, are urging publication of details of the private love life of an unmarried individual. John_Whittingdale There is a good reason to publish this story now. The suspicion is that when some newspapers knew about it back in 2013/14 they did not run with it because they feared pushing the Secretary of State responsible for media regulation into implementing Lord Justice Leveson’s suggestions for statutory oversight of the UK press.
    [Show full text]
  • MOD100024092 the Leveson Inquiry
    WITNESS STATEMENT OF JOANNE KATHLEEN ROWLING I, JOANNE KATHLEEN ROWLING, of Schillings 41 Bedford Square, London, WC1B 3HX WILL SAY as follows:- 1. I make this statement as a Core Participant in the Leveson Inquiry as chaired by the Rt.Hon Lord Justice Leveson ("the Inquiry"). I am an author, professionally known as J.K. Rowling. My ’Harry Potter’ series of novels were (initially) published over the years 1997 - 2007 and have enjoyed a great deal of commercial success. The novels have also been adapted into a series of feature films. The first film in the series premiered in 2001 with the final film being released worldwide in July of this year. As a result of those successes, for which I am very grateful, I have gone from being what I would describe as ’an ordinary person’ to someone who is - to an extent - ’famous’. The purpose of this Statement is to try to explain some of the experiences I have had as a result of my rise in prominence. MOD100024092 The Leveson Inquiry Before describing some of those experiences, I would like to stress that I do not want to be involved in the Inquiry as a result of any personal vendetta against the press. I have none. On the contrary, I acknowledge and support the vital role that the press plays as part of a free and democratic society. As an author I strongly believe in freedom of expression. I believe that the right to be informed and to share ideas is essential. If I had not been able to freely express my ideas over the years I would not be in the privileged position that I am today.
    [Show full text]
  • Feral Beast": Cautionary Lessons from British Press Reform Lili Levi University of Miami School of Law, [email protected]
    University of Miami Law School University of Miami School of Law Institutional Repository Articles Faculty and Deans 2015 Taming the "Feral Beast": Cautionary Lessons From British Press Reform Lili Levi University of Miami School of Law, [email protected] Follow this and additional works at: https://repository.law.miami.edu/fac_articles Part of the Communications Law Commons, and the Comparative and Foreign Law Commons Recommended Citation Lili Levi, Taming the "Feral Beast": Cautionary Lessons From British Press Reform, 55 Santa Clara L. Rev. 323 (2015). This Article is brought to you for free and open access by the Faculty and Deans at University of Miami School of Law Institutional Repository. It has been accepted for inclusion in Articles by an authorized administrator of University of Miami School of Law Institutional Repository. For more information, please contact [email protected]. TAMING THE "FERAL BEAST"1 : CAUTIONARY LESSONS FROM BRITISH PRESS REFORM Lili Levi* TABLE OF CONTENTS Introdu ction ............................................................................ 324 I. British Press Reform, in Context ....................................... 328 A. Overview of the British Press Sector .................... 328 B. The British Approach to Newspaper Regulation.. 330 C. Phone-Hacking and the Leveson Inquiry Into the Culture, Practices and Ethics of the Press ..... 331 D. Where Things Stand Now ...................................... 337 1. The Royal Charter ............................................. 339 2. IPSO and IM
    [Show full text]
  • Submission from IPPR to the Leveson Inquiry: Module 4
    Submission from IPPR to the Leveson Inquiry: Module 4 The IPPR welcomes this opportunity to contribute to Module 4 of the Leveson Inquiry’s deliberations: Recommendations for a more effective policy and regulation that supports the integrity and freedom of the press while encouraging the highest ethical standards. The main part of this submission draws upon a public attitudes survey commissioned by IPPR in late May 2012 into trust, impartiality and ownership in UK media. We hope the Inquiry will find the responses to this survey a helpful insight into how public attitudes are shaping up on some of the key issues the Inquiry is tackling as it draws together its evidence and analysis under Module 4. Background The IPPR’s Next Generation Media Project is focused mainly on producing a set of clear principles to shape and underpin future media policy. This is necessary both in response to the collapse of public trust following the phone hacking scandal and in the face of longer-standing challenges posed to traditional regulatory systems around the world by the disruptive effects of convergence in digital media content and platforms. The project will cover the areas of regulation and ownership and aims to bring some consistency to the rules that would apply both to traditional and new media forms as they converge. The Next Generation Media project starts with a recognition that there are competing policy priorities in this space. We believe it is important to focus on what is do-able, as well as what is desirable, within the technological constraints of a globalised media marketplace, the economic constraints of sustaining a valuable industrial sector which is in some cases struggling to survive – never mind grow and develop – and the democratic constraints on how far Parliament can go (or will be prepared to go) in limiting freedoms of expression and action in increasingly open public forums.
    [Show full text]
  • At Inquiry, Rupert Murdoch Defends 50-Year Record 25 April 2012, by RAPHAEL SATTER , Associated Press
    At inquiry, Rupert Murdoch defends 50-year record 25 April 2012, By RAPHAEL SATTER , Associated Press could swing elections. "We don't have that sort of power," he testified. Murdoch was being quizzed under oath before an inquiry run by Lord Justice Brian Leveson, who is examining the relationship between British politicians and the press, a key question raised by the phone hacking scandal that brought down Murdoch's News of the World tabloid in July. Revelations of widespread illegal behavior at the top-selling Sunday publication rocked Britain's In this image from video, News Corp. chairman Rupert establishment with evidence of media misdeeds, Murdoch appears at Lord Justice Brian Leveson's inquiry police corruption and too-cozy links between the in London, Wednesday April 25, 2012 to answer press and politicians. Murdoch's News International questions under oath about how much he knew about - the tabloid's publisher - has been hit with over 100 phone hacking at the News of the World tabloid. Murdoch is being grilled on his relationship with British lawsuits over phone hacking and dozens of politicians at the country's media ethics inquiry, while a reporters and media executives have been government minister is battling accusations he gave arrested. News Corp. privileged access in its bid to take over a major broadcaster. (AP Photo/Pool) Showing little equivocation, Murdoch batted away challenges to his ethics by inquiry lawyer Robert Jay. (AP) -- News Corp. chairman Rupert Murdoch said Asked whether he set the political agenda for his Wednesday that his globe-spanning TV and U.K.
    [Show full text]
  • Ofcom) 13 July 2016
    2016 Annual Colloquium on fundamental rights Public consultation on "MEDIA PLURALISM AND DEMOCRACY" Response from UK Office of Communications (Ofcom) 13 July 2016 Ofcom is the independent public regulatory authority responsible for implementing the AVMS Directive in the UK. We have over 10 years’ experience of media content regulation and we are a converged regulator with responsibilities for telecommunications, spectrum and postal services. We welcome the opportunity to contribute to this important consultation and look forward to discussing the topics outlined here in more detail in the future. We have answered the questions where our expertise is most relevant. For any questions about this response, please contact Maria Donde ([email protected]) B. Media freedom and pluralism 5. In the context of media freedom and pluralism, what should be the role of the State, if any, in the regulation of media? What should be the role of self-regulation? In the UK, all three models of media regulation (statutory, co- and self-regulation) are used. There are benefits in having a mixed approach, but also some challenges. Ofcom’s experience in regulating a number of sectors and working with a variety of statutory, co-regulatory and self-regulatory bodies suggests there are some core principles of effective regulation that are shared by all models. These principles are set out in our response to Question (7), below. In the UK, an inquiry into the regulation of the press conducted throughout 2011 – 2012 (the “Leveson Inquiry”) considered all forms of media regulation. Ofcom was asked to contribute to that Inquiry.
    [Show full text]