The Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, has published the results of the consultation launched on 3 March on the undertakings in lieu offered by News Corporation in relation to its proposed merger with BSkyB.   The Secretary of State is looking at the specific issue of media plurality  (the competition issues having already been cleared at European level by the European Commission).

The March undertakings have been offered in lieu of a reference to the Competition Commission.  In particular it is proposed that Sky News will be 'spun off' as a separate company and would operate independently from BSkyB (see Community Week issue 511).  The Secretary of State stated that he was 'minded to accept' these undertakings, having sought independent advice from the OFT and Ofcom.

Mr Hunt has now stated that no new information has arisen from the consultation which would cause Ofcom or the OFT to change their earlier advice (that the undertakings address Ofcom's media plurality concerns and are viable for 10 years).  However, a number of suggestions were made which could further strengthen the undertakings.  As a result, Mr Hunt has published a revised and more robust set of undertakings for consultation.

The changes include:

  • The need for Sky News board meetings to include an independent director with senior editorial and/or journalistic expertise if decisions on editorial matters are to be made.
  • The appointment of a monitoring trustee whose main role is to ensure that News Corp complies with the undertakings in the run up to spin-off.
  • A requirement for Sky to continue to cross-promote Sky News on its channels.
  • A requirement for Sky News' Articles of Association to be approved by the Secretary of State (to ensure that Sky News' ability to borrow is not unduly limited).

More than 40,000 representations were received in response to the March consultation, including a very large number of near-identical responses as a result of internet campaigns. 

Comments on the revised undertakings are requested by midday Friday 8 July.  Although not legally required to do so, Mr Hunt states that he will again seek independent advice from the OFT and Ofcom before making a final decision.  Further, no guarantee has been given that there will be a final decision before the House of Commons rises for the summer recess on 19 July.

Objections have already been raised to the proposals, indeed it is understood that pressure group, Avaaz, has threatened to judicially review the Secretary of State's decision.

To view Community Week, Issue 527 – 1 July 2011 in full click here.

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