I have recently received a number of e-mails concerning 21st Century Fox's proposed purchase of Sky.
As you are probably aware, Sky has received an approach from 21st Century Fox to acquire the 61 per cent share of Sky that it does not yet already own.
Under the powers set out in the Enterprise Act 2002, the Secretary of State for Culture, Media and Sport has a quasi-judicial role that allows her to intervene on the basis of specified media public interest considerations. These considerations refer to the need for there to be a sufficient plurality of media ownership, for the availability of a wide range of high-quality broadcasting and for those with control of media enterprises to have a genuine commitment to broadcasting standards objectives.
Having received a number of concerns regarding the proposed takeover bid last year, I wrote to the Department of Culture, Media and Sport in December. The Minister concerned has assured me that any decision taken by the Secretary of State on whether or not to intervene will be a quasi-judicial decision (as stated above). It is important in this regard that she is able to act independently and that the process is scrupulously fair and impartial.
It is rightly not for Government to determine who should, and should not, hold TV broadcasting licences. Ofcom has an on-going duty to ensure all UK broadcasters are fit and proper to hold TV broadcasting licences. If any evidence comes to light, then it is for Ofcom to take account of that evidence.
After hearing representations from Sky, 21st Century Fox and many other third parties, the Secretary of State issued a European Intervention Notice on the 16th March. This decision was taken on the grounds of media plurality and a commitment to broadcasting standards and triggered Ofcom, in turn, to assess and report on the public interest grounds.
The Competition and Markets Authority reported on the jurisdiction in June. Later in the month, the Secretary of State released her minded-to (not final) decisions on whether to refer the merger to a full phase two investigation. The Secretary of State will be taking representations on these until the 14th July and she will then consider the evidence received before coming to a final decision on the aforementioned grounds of media plurality and commitment to broadcasting standards.
The question of whether someone is fit and proper to hold a broadcasting licence is a different consideration to those outlined in the Enterprise Act 2002, and one that quite rightly sits with Ofcom. Given the Secretary of State's current quasi-judicial role in the merger, the Government will not be commenting on the findings. Ofcom has an on-going duty to ensure all UK broadcasters are fit and proper to hold TV broadcasting licences and if any evidence comes to light then it is for Ofcom to take account of that evidence.
Thank you again for taking the time to contact me.