Government plans to refer News Corp bid for Sky to Competition Commission
The Government intends to refer News Corp's proposed £8bn bid for BSkyB to the Competition Commission, but will hear further undertakings from Rupert Murdoch's news organisation first.
Jeremy Hunt, the Secretary of State for Culture, Olympics, Media and Sport, said in a statement: "I still intend to refer the merger to the Competition Commission.
On the evidence available, I consider that it may be the case that the merger may operate against the public interest in media plurality.
On the evidence available, I consider that it may be the case that the merger may operate against the public interest in media plurality.
“However, before doing so it is right that I consider any undertakings in lieu offered by any merging party which have the potential to prevent or otherwise mitigate the potential threats to media plurality identified in the Ofcom report."
As The Daily Telegraph reported previously, the communications regulator Ofcom recommended further investigation into News Corp's plan to buy the 61pc of the satellite broadcaster it does not already own for £7.8bn to consolidate a business it helped build.
Ofcom handed over its report to the DCMS, the government department examining the case, on December 31.
News Corp, which is understood to have held a series of meetings with the Government, has suggested a number of potential remedies in the hope of getting the deal past regulators.
It is these potential remedies that Mr Hunt will first consider before making his final decision, with the help of the Office of Fair Trading.
BSkyB said it noted Mr Hunt's announcement, and said it would "continue to co-operate with the ongoing regulatory process."
Rival media organisations have objected to the merger of News Corp and BSkyB, arguing it would give Mr Murdoch too much influence over public opinion.
News Corp owns about a third of the newspaper market in Britain including The Times and The Sun, the country's best-selling tabloid.
The decision to ask Ofcom to conduct a media plurality test followed opposition from rival media groups. In a combined letter, the media groups asked Vincent Cable, the minister formerly in charge of the News Corp deal, to block the plans over fears the deal posed a threat to competition and media plurality.
Mr Cable, the Business Secretary, was stripped of responsibility for a decision on the deal, after telling undercover journalists he had 'declared war' on Mr Murdoch.
Due to the scale of the deal, the European Commission was forced to launch a probe on competition grounds. If the EU opts for a further, phase II investigation, this could take 125 working days.
BSkyB said it noted Mr Hunt's announcement, and said it would "continue to co-operate with the ongoing regulatory process."
Rival media organisations have objected to the merger of News Corp and BSkyB, arguing it would give Mr Murdoch too much influence over public opinion.
News Corp owns about a third of the newspaper market in Britain including The Times and The Sun, the country's best-selling tabloid.
The decision to ask Ofcom to conduct a media plurality test followed opposition from rival media groups. In a combined letter, the media groups asked Vincent Cable, the minister formerly in charge of the News Corp deal, to block the plans over fears the deal posed a threat to competition and media plurality.
Mr Cable, the Business Secretary, was stripped of responsibility for a decision on the deal, after telling undercover journalists he had 'declared war' on Mr Murdoch.
Due to the scale of the deal, the European Commission was forced to launch a probe on competition grounds. If the EU opts for a further, phase II investigation, this could take 125 working days.
