RUPERT Murdoch’s £11.7 billion takeover bid for Sky has been referred to regulators amid concerns it would give the media mogul too much power and threaten broadcasting standards.
Culture Secretary Karen Bradley told MPs the bid by Murdoch’s 21st Century Fox would be examined by media regulator Ofcom and the Competition and Markets Authority.
She said Ofcom would also assess whether Murdoch’s company was a “fit and proper” holder of a broadcasting licence.
The Murdoch family have never wavered in their ambition to take full control of Sky, despite the damaging failure of a previous attempt in 2011 when their British newspaper business became embroiled in a phone-hacking scandal.
Jon Nicholson, the SNP’s media spokesperson, said: “There are valid concerns about this merger, that will increase the influence of Rupert Murdoch and his family in the media in the UK.
“There are concerns regarding a number of breaches of broadcasting standards by Fox, and the behaviour and corporate governance failures of News Corporation in the past.”
Chris Bryan, a Labour former minister and victim of phone-hacking, told Bradley: “You should bear in mind that historically what successive governments have done – prime ministers in particular since Mrs Thatcher – is they’ve decided Rupert and now James Murdoch are fit and proper persons because they own newspapers which can support them at General Elections. The concentration of ownership is the problem here.
“Sky now has nearly four times as much money every year to spend as the BBC, so I hope we will end up with a position where we maintain that diversity in the British ecology: a strong BBC, not being bullied by Murdoch and Sky.”
Ed Miliband, who opposes the takeover, welcomed Bradley’s decision to refer the bid.
The former Labour leader said: “Many of us believe that if you look at the conduct of the Murdochs and the untrammelled power they already have, it is not in the public interest for them to take over Sky and have full control.”
He also urged Bradley to give Ofcom more time, if it is requested, to consider whether Murdoch and his family are “fit and proper” owners.
Fox said it was looking forward to working with British authorities in their reviews of the deal.
In a statement, the company said: “We are confident that a thorough review of our track record over 30 years will underscore our commitment to upholding high broadcast standards, and will demonstrate that the transaction will not result in there being insufficient plurality in the UK.”
The company already owns 39 per cent of Sky.
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