For Distribution to CPs Jeremy Hunt evidence to Leveson Inquiry Primary evidence Vol I of 3 MOD300004241 For Distribution to CPs f .... EUROPEAN INTERVENTION NOTICE GIVEN PURSUANT TO SECTION 67 ENTERPRISE ACT 2002 - ANTICIPATED ACQUISITION OF BRITISH SKY BROADCASTING PLC BY NEWS CORPORATION Whereas the Secretary of State has reasonable grounds for suspecting that it is or may be the case that: (a) arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation, as defined in section 23 of the Enterprise Act 2002 ("the Act") in that: (i) enterprises carried on by or under the control of News Corporation will cease to be distinct from enterprises carried on by or under the control of British Sky Broadcasting plc; and (ii) the value of the turnover in the United Kingdom of the enterprise to be taken over exceeds £70million; (b) a concentration with a Community dimension (within the meaning of Council Regulation (EC) No 139/2004- "the EC MergerRegulati0n), or part of such a concentration has thereby arisen or will arise; Whereas the Office of Fair Trading is unable to refer the relevant merger situation concerned to the Competition Commission under section 33 of the Act (whether or not it would otherwise have been under a duty to make such a reference) by virtue of article 21 (3) .of the EC Merger Regulation; Whereas the Secretary of State is considering whether to take appropriate measures to protect legitimate interests as permitted by article 21(4) of the EC Merger Regulation; Whereas the Secretary- of State believes that it is or may be the case that the public interest consideration specified in section 58 of the Act concerned with the sufficiency of plurality’ of persons with control of media enterprises is relevant to a consideration of the merger situation; Now, therefore, the Secretary of State in exercise of his powers under section 67(2) of the Act, hereby gives this intervention notice and requires the Office of Fair Trading to investigate and report in accordancewRh article 4 of the Enterprise Act 2002 (Protection of Legitimate Interests) Order 2003 and - - Ofcom to investigate and repo~ in accordance with article 4A of that Order, both within the period ending on 31 December 2010, 4 November 2010 An official of the Department for Business Innovation & Skills MOD300004242 For Distribution to CPs Ol om Invitation to comment, for public interest test on the anticipated acquisition of British Sky Broadcasting plc by News Corporation- Invitation to comment Publication date: 5 November 2010 Closing date for submissions: 19 November 2010 MOD300004243 For Distribution to CPs Introduction 1.1 On 3 November News Corporation notified the European Commission of its intention to acquire the shares in BSkyB it does not already own. On 4 November the Secretary of State issued a European intervention notice requesting Ofcom to report on the effects of the proposed acquisition on media plurality by 31 December 2010. 1.2 On 4 November Ofcom published a guidance note on our website1, setting out the process and timetable for preparing our report on the public interest considerati on set out by the Secretary of State. " The public interest consideration 1.3 In respect of the proposed News Corporation acquisition of the shares in BSkyB it does not already own, the Secretary of State for BIS has issued a European interver~ti:on notice in relation to the public interest consideration in section 58 of the Enterprise Act 2002 concerned with the sufficiency of plurality of persons with control of media enterprises, which is: "the need, in relation to every different audience in the United Kingdom or in a particular area or locality of the United Kingdom, for there to be a sufficient plurality of persons with control of the media enterprises serving that a u dien ce ,2 1.4 In considering the public interest, we do so in light of the relevant statutory framework whereby Parliament has attached significance to the need for sufficient media plurality in the functioning of a healthy and informed democratic society. 1.5 In undertaking an initial investigation of this public interest consideration and providing advice and recommendations to the Secretary of State, we will consider the key constituent parts of the public interest issue outlined above. Specifically, we will consider: " ¯ Content types ¯ Audiences ¯ Media platforms ¯ Control of media enterprises ¯ Future developments in the media landscape 1.6 Content types: we will consider what are the most relevant content types and genres (for example news, current affairs, entertainment, fiction or drama) for the public interest consideration. 1.7 Audiences: we will consider whether specific consumer or citizen groups (defined by location, demographic, socio-economic group or any other relevant cdteda) will be 1 http://media, ofcom, orq. uk/2010/11/04/guidance-note-for-public-interest-test! 2 Enterpr{Se Act 2002, s.58(2c)(a). MOD300004244 For Distribution to CPs affected by the changes to the level of media plurality as a result of the proposed acquisition. 1.8 Media platforms: We will consider which are the relevant platforms or media enterprises (for example "IV, newspapers~ radio, internet, etc.) in reviewing the implications of the proposed acquisition. 1.9 Control of media enterprises: in relation to the issue of control, we will consider: 1.9.1 Plurality of persons with control of the relevant media enterprises (external ownership and control) 1.9.2 Plurality in the range of information and views made available to audiences, including the level .of independence in editorial control or expression within the relevant media enterprises (internal control) 1.10 Future developments: we will consider how futu remarket developments, including the convergence of broadcast, print and internet media may affect consumers consumption of relevant media and the current levels, of media plurality. 1,11 We are seeking views from stakeholders on all the issues set out above and any other issues you think we Should consider. We also welcome views on the potential future impact of the proposed acquisition on the sufficient plurality of persons with control of the media enterprises in the UK. Advice and recommendation to the Secretary of State 1.12 Overal.., Ofcom will: cOnsider how the proposed acquisition may affect the level of plurality of persons with control of the media enterprises serving the relevant audiences taking account of representations and analysis of’relevant information. 1.13 Given the limited time for Ofcom’s initial investigation and report on the effect onthe media public interest consideration, we are also interested in third parties’ views on potential remedies or mitigations to any public interest concerns identified by third parties. These will be passed to the Secretary of State (.and to the Competition Commission in light of a reference) to he!p inform his decision. How to make submissions 1.14 Ofcom invites written submissions to be made by 19 November. We are seei~ing responses that provide views, supported by evidence, on the specific questions detailed above, or on other considerations stakeholders consider relevant. 1.15 Please make representations via: 1.16 The online web form at http;Ustakeholders.ofcom.or.q.uk/consultations/public-interest- test/responseform 1.17 By email - especially for larger submissions - particularly those with supporting charts, tables or other data.- to PubliclnterestTest201 O~,ofcom.or,q.uk attaching your 2 MOD300004245 For Distribution to CPs response in Microsoft Word format, together with a consultation response coversheet. 1.18 Responses may alternatively be posted or faxed to the address below, marked with ’News Corp / BSkyB publiC interest test’. Marco Marini Ofcom Riverside House 2A Southwark Bridge Road London SE1 9HA Fax: 020 7981 3706 1.19 We do not need a hard copy in addition to an electronic version. Ofcom will acknowledge receipt of responses if they are submitted using the online web form but not etherwise. 1.20 Ofcom strictly observes confidentiality in all aspects of its operations. This applies to material supplied in response to this invitation to comment. We .will give the Secretary of State (and the Competition Commission in the event that this acquisition is referred by the Secretary of State)-all relevant submissions (including confidential ones) to enable him make his decision. If your submission includes material which is confidential, we will require a full version with confidential" information omitted, together with reasons why the submission should be treated as confidential. 1.21 Meetings with stakeholders may also be held where appropriate. If you would like to request a meeting with Ofcom to discuss your submission, you should send a request via e-mail to _PubliclnterestTest2010(~,ol~cem.0rg.uk explaining why a meeting is required in addition-to yourwritten SubmissiOn. We wilt consider these requests on an individual basis and as allowed within the timescale set by the Secretary of State. 3 MOD300004246 For Distribution to CPs ’4, Invitation to comment: Public Interest Test - proposed acquisition of BSkyB by News Corporation November 5, 2010 Ofcorn has today published an invitation to comment on the Public Interest Test it will conduct in relation to News Corporation’s intention to acquire the shares in British Sky Broadcasting PIc it does not already own. This document outlines the considerations Ofcom will make as part of its initial investigation