The competition watchdog has set out the scope of its wide-ranging investigation into Rupert Murdoch’s £11.7 billion takeover bid for Sky.
The Competition and Markets Authority (CMA) outlined the main issues for its probe into how the deal would impact media plurality and broadcasting standards in the UK and is inviting submissions for its six-month investigation.
Among the areas the CMA will look at are how and if the Murdoch family’s ability to control or influence editorial and commercial decisions at Sky News will change following 21st Century Fox’s bid to buy the remaining 61% of Sky it does not already own.
Rupert Murdoch’s 21st Century Fox announced a deal to buy the 61% of Sky is does not already own in December last year (PA)
It will also look at the Murdoch family’s ability to “influence the political agenda” and how that could change after the deal, alongside more general scrutiny of how it could affect the number and variety of media in the UK, including the “range of viewpoints”.
Fox and Sky’s broadcasting standards will also come under the microscope, with the CMA confirming it will look at whether the merged group would have a “genuine commitment” to this – including consideration of their track record.
Corporate governance and the treatment of employees in the UK and overseas will come under the scope of that line of inquiry.
Karen Bradley – Secretary of State for Digital, Culture Media and Sport – referred Fox’s proposed takeover of Sky to the CMA for a full inquiry earlier this year after a three-month investigation by Ofcom.
While it raised concerns over media plurality, Ofcom found there was no reason to block the takeover bid on the grounds of broadcasting standards.
But the CMA’s latest update on its investigation confirmed it would focus on both media plurality and broadcasting standards.
Anne Lambert, panel chair at the CMA, said: “The CMA will use its extensive experience of investigating different issues in a wide range of sectors to thoroughly and impartially investigate the proposed takeover of Sky Plc by 21st Century Fox.
“Once the investigation is complete we will report back to Karen Bradley for her to make a final decision.”
Ms Bradley will also appear in front of a Commons committee hearing on Wednesday, while Sky will face shareholders for its annual general meeting on Thursday.
The CMA has until March 8 to report back to Ms Bradley with its recommendations.
It has set a deadline of December 8 for initial submissions and responses and plans to outline provisional findings in mid to late December.