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Following the culture secretary’s concerns of Murdoch’s takeover of Sky (LON:SKY), the Competition and Markets Authority will carry out further investigations into the £11.7 billion deal.
Not only did Karen Bradley want regulators to consider implications of the increased influence Murdoch would gain from the deal, but also wanted an examination into whether the Murdoch family had the full commitment to the set broadcasting standards.
“The fact that Fox (NASDAQ:FOX) belatedly established such procedures does not ease my concerns, nor does Fox’s compliance history,” said Bradley.
“Ofcom was reassured by the existence of the compliance regime which provides licensees with an incentive to comply. However, it is clear to me that parliament intended the scrutiny of whether an acquiring party has a ‘genuine commitment’ to attaining broadcasting standards objectives to happen before a merger takes place.
“Third parties also raised concerns about what they termed the ‘Foxification’ of Fox-owned news outlets internationally. On the evidence before me, I am not able to conclude that this raises non-fanciful concerns.
“However, I consider it important that entities which adopt controversial or partisan approaches to news and current affairs in other jurisdictions should, at the same time, have a genuine commitment to broadcasting standards here. These are matters the CMA may wish to consider in the event of a referral,” she finished.
Bradley was under high pressure to carry out further investigation. Avaaz and several MPs including Ed Miliband threatened to launch a judicial review if Bradley did not refer the deal to the CMA.
Tom Watson, Labour’s deputy leader said: “I think it’s the first time a minister in the current government has ever stood in the way of what the Murdochs want, and frankly not before time, so well done,”
Sky discontinued Fox News on its channel last month due to low figures rather than concerns surrounding the bid.
The announcement made on Tuesday caused shares in Sky to plummet 5 percent.